Document:

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                                                                   EXHIBIT 10.42

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT, dated as of November 27, 2002 (this "PLEDGE"),
is made by CG AUSTRIA, INC., a Delaware corporation having an office at One
Technology Center, Mail Drop 15, Tulsa, Oklahoma 74103 ("PLEDGOR") to WILLIAMS
HEADQUARTERS BUILDING COMPANY, a Delaware corporation, having an office at One
Williams Center, Mail Drop 41-3, Tulsa, Oklahoma 74172, (together with its
successors and assigns, "LENDER").

         All capitalized terms used herein but not defined herein shall have the
meanings specified in the Mortgage (as defined below).

                                   WITNESSETH:

         WHEREAS, the Lender as seller, Williams Technology Center, LLC, a
Delaware limited liability company ("WTC") as purchaser, WilTel Communications
Group, Inc., a Nevada corporation ("NEW WCG"), formerly known as Williams
Communications Group, Inc., a Delaware corporation, prior to its reorganization
pursuant to the Plan ("WCG"), Williams Communications, LLC, a Delaware limited
liability company ("WCL") and Williams Aircraft Leasing, LLC, a Delaware limited
liability company ("WAL") are parties to that certain Real Property Purchase and
Sale Agreement dated as of July 26, 2002 (as amended by the First Amendment to
Real Property Purchase and Sale Agreement dated as of October 15, 2002 among
Lender, WTC, WCG, WCL, New WCG, WAL and Williams Aircraft, Inc., a Delaware
corporation ("WAI"), and as further amended by the Second Amendment to Real
Property Purchase and Sale Agreement dated as of October 23, 2002 among Lender,
WTC, WCL, New WCG, WAL, WAI and, for purpose of Section 15 therein, The Williams
Companies, Inc., a Delaware corporation (as so amended, and as the same may be
further amended, restated, supplemented or otherwise modified from time to time,
collectively, the "PURCHASE AGREEMENT");

         WHEREAS, in consideration of the benefits to WTC derived from Lender's
entering into the Purchase Agreement and Lender's performance of its obligations
thereunder (including, without limitation, Lender's conveyance of the Land and
Improvements to WTC pursuant thereto), WTC, WCG, and WCL executed and delivered
to Lender as payee, (a) a promissory note dated as of October 15, 2002 in the
original principal amount of $100,000,000, with a maturity date of April 1, 2010
or such earlier date to which it may be accelerated pursuant to the terms
thereof (as hereafter amended, extended, replaced, restated, supplemented,
restructured, increased or refinanced from time to time, "LONG-TERM NOTE"); and
(b) a promissory note dated as of October 15, 2002 in the original principal
amount of $44,800,000 and having an aggregate (principal and interest) accreted
value at maturity of $74,360,295.30 with a maturity date of December 29, 2006 or
such earlier date to which it may be accelerated pursuant to the terms thereof
(as hereafter amended, extended, replaced, restated, supplemented, restructured,
increased or refinanced from time to time, the "SHORT-TERM NOTE");

         WHEREAS, Pledgor is a wholly owned direct subsidiary of New WCG and
will benefit from the extensions of credit under the Notes;

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         WHEREAS, Pledgor will acquire and own as of November 29, 2002 not less
than sixty-six percent (66%) of the stock and beneficial interests in WilTel
Communications Pty. Limited (ACN 081 547 042), a corporation organized and
existing under the laws of Australia ("COMPANY");

         WHEREAS, Lender has required as a condition precedent to making the
loans (the "LOAN") evidenced by the Notes that this Pledge be duly executed and
delivered by Pledgor to Lender to secure the Obligations;

         WHEREAS, in order to induce Lender to make the Loan, Pledgor wishes to
execute, and deliver to Lender this Pledge;

         WHEREAS, this Pledge is subject to the provisions of the Intercreditor
Agreement (as hereinafter defined) in all respects; and

         WHEREAS, it is a condition to the effectiveness of this Pledge that the
FIRB Approval (hereinafter defined) is obtained.

         NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Pledgor hereby covenants and agrees for the benefit of Lender as
follows:

         1. Definitions. For the purposes of this Pledge, the following terms
shall have the meanings set forth hereinbelow:

         "ACKNOWLEDGMENT" shall have the meaning set forth in the Paragraph 3.

         "ADMINISTRATIVE AGENT" shall mean Bank of America, N.A., as
Administrative Agent under the Credit Agreement, together with its successors
and assigns.

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or day
on which banks are authorized to be closed in Tulsa, Oklahoma.

         "COLLATERAL" shall have the meaning set forth in Paragraph 2.

         "COMPANY" shall have the meaning set forth in the Recitals.

         "CREDIT AGREEMENT" shall have the meaning set forth in the
Intercreditor Agreement.

         "CREDIT AGREEMENT LENDER" shall mean a "Lender" (as such term is
defined in the Credit Agreement).

         "DEFAULT RATE" shall have the meaning set forth in the Short Term Note.

         "DISTRIBUTIONS" shall mean any and all income, payments, earnings,
dividends and distributions, whether in cash or in kind, accruing or becoming
due, paid or payable to Pledgor by reason of or otherwise in connection with
Pledgor's Interest.

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         "EVENT OF DEFAULT" shall have the meaning set forth in the Mortgage.

         "FIRB APPROVAL" shall mean either (a) by a lapse of time the Treasurer
of the Commonwealth of Australia becomes precluded from making an order in
respect of the arrangements contemplated by this Pledge and the Second Equitable
Mortgage or (b) a notice in writing is issued by or on behalf of the Treasurer
of the Commonwealth of Australia to Lender stating that the Commonwealth
Government does not object to the arrangements contemplated by this Pledge or
the Second Equitable Mortgage, either conditionally on terms acceptable to
Lender in its sole discretion or unconditionally.

         "FIRST EQUITABLE MORTGAGE" shall mean that certain First Equitable
Mortgage of Shares dated as of the date hereof, executed by Pledgor and
Administrative Agent, as the same may be amended, restated, supplemented or
otherwise modified from time to time.

         "INTERCREDITOR AGREEMENT" shall mean that certain Intercreditor and
Subordination Agreement (PowerTel Collateral) dated as of October 15, 2002, by
and between Lender and the Administrative Agent and consented to by the Loan
Parties (as defined therein) and the Company, as amended, restated, supplemented
or otherwise modified, renewed or replaced from time to time.

         "INTEREST" shall mean any direct or indirect ownership, equity, record
or beneficial interest of any kind or nature of Pledgor in Company, including,
without limitation, interests in Company's stock and Pledgor's rights, title and
interest in, to and under the Shareholders Agreement, and any right, including
without limitation any option, put, call or warrant and rights to vote and
receive Distributions relating to such interest, and any and all rights to
principal, interest and other sums due under any loans by Pledgor to Company;
provided, however, that anything to the contrary herein or elsewhere in this
Pledge notwithstanding, at no time and in no event shall more than 66% of the
total outstanding beneficial interests in the Company constitute "Interest" or
otherwise be pledged to or subject to a security interest in favor of Lender
under this Pledge or the Second Equitable Mortgage.

         "LENDER" shall have the meaning set forth in the preamble to this
Pledge.

         "LOAN" shall have the meaning set forth in the Recitals.

         "LONG-TERM NOTE" shall have the meaning set forth in the Recitals.

         "MORTGAGE" shall mean that certain Mortgage With Power of Sale,
Security Agreement, Assignment of Leases, Rents and Profits, Financing Statement
and Fixture Filing made by WTC to the Lender dated as of October 15, 2002, as
the same may be amended, restated, supplemented or to otherwise modified from
time to time.

         "NEW WCG" shall have the meaning set forth in the Recitals.

         "NOTES" shall mean, collectively, the Short-Term Note and the Long-Term
Note.

         "NOTICE OF DEFAULT" shall have the meaning set forth in Paragraph 10
hereof.

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         "PERMITTED DISPOSITION" shall mean any sale, assignment, transfer,
issuance or other disposition (a) by Pledgor of any direct or indirect
ownership, equity or other beneficial interest in the Company or any other
Collateral to any Person or (b) by Pledgor or the Company of any direct or
indirect ownership, equity or other beneficial interest in PowerTel to any
Person, provided that (i) the net proceeds of any such sale, assignment,
transfer, issuance or other disposition shall be deposited into a new account
with a Credit Agreement Lender that is subject to an account control agreement
(or account control agreements, as applicable) which is or are reasonably
satisfactory to such Credit Agreement Lender, the Administrative Agent and
Lender subject to (x) a perfected first lien and security interest in favor of
the Administrative Agent for the benefit of the Secured Parties (as defined in
the Security Agreement) and (y) a perfected second lien and security interest in
favor of Lender (as applicable); (ii) the consideration received in connection
with any such sale, assignment, transfer, issuance or other disposition shall
not be less than the fair value of the property sold, assigned, transferred,
issued or otherwise disposed of, as determined in good faith and approved by the
board of directors of Pledgor; (iii) any such sale, assignment, transfer,
issuance or other disposition shall be effected on an arm's-length basis; and
(iv) Pledgor shall deliver to Lender, no less than ten (10) Business Days prior
to the date of any such expected sale, assignment, transfer, issuance or other
disposition, written notice of the identity of the purchaser, assignee or other
transferee, the expected date of closing such sale, assignment, transfer,
issuance or other disposition, the expected date of receipt by Pledgor of the
net proceeds (including the approximate amount thereof) with respect thereto,
the principal terms of such sale, assignment, transfer, issuance or other
disposition, and such other information as Lender may reasonably request in
writing (in each case subject to any applicable confidentiality provisions or
requirements).

         "PERMITTED ENCUMBRANCES" shall mean "Permitted Encumbrances" as defined
in the Credit Agreement on the date hereof.

         "PLEDGE" shall have the meaning set forth in the preamble to this
Pledge.

         "PLEDGOR" shall have the meaning set forth in the preamble to this
Pledge.

         "POWERTEL" shall mean PowerTel Limited (f/k/a Spectrum Network Systems
Limited) (ACN 001 760 103), a corporation organized and existing under the laws
of Australia.

         "PURCHASE AGREEMENT" shall have the meaning set forth in the Recitals.

         "SECOND EQUITABLE MORTGAGE" shall mean that certain Second Equitable
Mortgage of Shares dated the date hereof, executed by Pledgor and Lender and
consented to by the Company, as the same may be amended, restated, supplemented
or otherwise modified from time to time.

         "SECURITY AGREEMENT" shall mean that certain Amended and Restated
Security Agreement dated as of April 23, 2001, as amended and restated as of
October 15, 2002 made by Pledgor and certain other parties in favor of the
Administrative Agent, as the same may be amended, restated, replaced,
refinanced, supplemented or otherwise modified from time to time.

         "SHAREHOLDERS AGREEMENT" shall mean that certain Spectrum Shareholders
Agreement dated June 19, 1998 by and among the Company, Downtown Utilities Pty
Limited

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(ACN 082 754 407), as Trustee, South-East Queensland Electricity Corporation
Limited trading as Energex (ACN 078 849 055), CitiPower Pty (ACN 064 651 056),
Energy Australia, a statutory SOC under the Stated Owned Corporations Act 1989
(NSW) and Williams Holdings of Delaware, Inc., a Delaware corporation, as
amended, restated, supplemented or otherwise modified from time to time.

         "SHORT-TERM NOTE" shall have the meaning set forth in the Recitals.

         "STOCK CERTIFICATE" shall mean all certificates now and/or hereafter
issued to Pledgor representing Pledgor's Interest.

         "UCC-1s" shall mean the financing statements described in Paragraph
3(b) hereof.

         "VOLUNTARY BANKRUPTCY EVENT" shall mean the occurrence of any or all of
the following actions by or with respect to Pledgor and/or Company: (i) filing
of a voluntary petition in bankruptcy or a petition or answer seeking or
consenting to any reorganization or for an arrangement, imposition,
readjustment, composition, liquidation, dissolution, winding-up or any other
relief for itself or with respect to its debts pursuant to the United States
Bankruptcy Code or any similar law or regulation of any Governmental Authority
relating to distress of debtors or relief for debtors, now or hereafter in
effect; (ii) an assignment for the benefit of creditors or such party admits in
writing its inability to pay its debts as they become due; or (iii) seeking or
consenting to the appointment of a receiver, trustee, custodian, conservator,
liquidator or other similar official of such party, for all or any part of the
Collateral; (iv) committing any voluntary or involuntary "act of insolvency" as
such term is defined in the United States Bankruptcy Code or any state law or
similar law or regulation of any federal, state, domestic, foreign or other
jurisdiction; (v) there is filed against it in any proceeding or other action,
an involuntary petition, arrangement, imposition, readjustment composition,
liquidation, dissolution, winding-up or an answer proposing an adjudication of
it as bankrupt or insolvent, or, an action seeking to appoint a trustee,
receiver, custodian, or conservator or liquidator, or is subject to a
reorganization, in any such case, pursuant to the United States Bankruptcy Code
or any similar law or regulation, federal, state, domestic or foreign now or
hereafter in effect, and any such filing, answer, action or other proceeding is
approved by any court of competent jurisdiction and the order approving the same
shall not be vacated, stayed, set aside or discharged within ninety (90) days
from entry; or (vi) it fails to deny the material allegations of a filing of any
such petition or answer in a timely manner.

         "WAL" shall have the meaning set forth in the Recitals.

         "WCG" shall have the meaning set forth in the Recitals.

         "WCL" shall have the meaning set forth in the Recitals.

         "WTC" shall have the meaning set forth in the Recitals.

                                      -5-
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            2. Pledge.

            Notwithstanding anything in this Pledge Agreement to the contrary,
      this Pledge shall not be effective unless and until the FIRB Approval has
      been obtained by Lender and, upon the receipt by Lender of the FIRB
      Approval, this Pledge shall be effective as of the date hereof.

                  (a) As security for the prompt and complete payment and
      performance of the Obligations, Pledgor hereby pledges, assigns and
      hypothecates to Lender and grants to Lender a continuing, perfected and
      second priority lien upon and security interest (subject only to the lien
      and security interest granted by Pledgor to the Administrative Agent
      pursuant to the Security Agreement) in, to and under all of Pledgor's
      right, title and interest in and to the following (collectively, the
      "COLLATERAL"), whether now existing or hereafter from time to time
      acquired (provided that in no event shall the equity interests in the
      Company pledged to or subject to a security interest in favor of Lender
      pursuant to this Pledge and/or the Second Equitable Mortgage exceed 66% of
      the beneficial interests in the Company):

                  (i) Pledgor's Interest;

                  (ii) Distributions;

                  (iii) all Stock Certificates;

                  (iv) all additional certificates or other evidence of
            Pledgor's Interest in Company received by Pledgor or to which
            Pledgor is entitled pursuant to any reclassification,
            reorganization, or increase or reduction of capital attributable to
            any certificate described in clause (iii) above or in substitution
            of or in exchange of any certificate described in clause (iii)
            above;

                  (v) any loans made by Pledgor to the Company, including the
            full principal balance thereof, and all interest and other sums due
            thereon;

                  (vi) all interest, cash, dividends, checks and other
            instruments and property from time to time hereafter received,
            receivable or otherwise distributed in addition to, in respect of or
            in exchange or substitution for all or any portion of Pledgor's
            Interest; and

                  (vii) all proceeds (other than Distributions made prior to the
            occurrence of an Event of Default (as hereinafter defined)) retained
            by Pledgor in accordance with Paragraph 11(b) hereof) of, from and
            relating to any of the foregoing.

                  (b) This Pledge shall be in addition to, and shall in no way
      limit or impair, any rights of Lender in, to and under any other
      collateral, including without limitation the Mortgaged Property, or any of
      the Loan Documents.

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            3. Delivery and Registration of Pledged Collateral.

                  (a) The administration of the Collateral and this Pledge shall
      be subject in all respects to the Intercreditor Agreement and, subject to
      the provisions of the Intercreditor Agreement and the rights of the
      Administrative Agent pursuant to the Security Agreement and the First
      Equitable Mortgage, all Collateral (other than Distributions made prior to
      the occurrence and continuance of an Event of Default to the extent
      provided in Paragraph 11 hereof) shall, at Lender's sole option, be
      delivered by delivery of all certificates or instruments (if any)
      representing or evidencing such Collateral in suitable form for transfer
      under applicable law by delivery or accompanied by duly executed
      instruments of transfer or assignment, undated and in blank, all in form
      and substance reasonably satisfactory to Lender. Upon the issuance of any
      such certificate or instrument, the same shall be so assigned, delivered
      and endorsed to Lender promptly without the need for any request therefor
      by Lender. Lender shall have the right, at any time and from time to time
      upon the occurrence and during the continuance of an Event of Default in
      its discretion and without notice to Pledgor, to transfer to or to
      register in its name or in the name of any of its nominees any or all of
      the Collateral; provided, however, that the foregoing shall not be
      construed to limit Lender's rights to perfect and continue the perfection
      of its security interest in the Collateral pursuant to this Pledge or the
      Second Equitable Mortgage prior to the occurrence of an Event of Default.

                  (b) In addition to and not in limitation of the foregoing,
      concurrently with the execution of this Pledge, (i) Pledgor shall deliver
      to Lender the "ACKNOWLEDGMENT" in the form of Exhibit A hereto confirming,
      inter alia, that Company has noted the pledge effected by this Pledge and
      the Second Equitable Mortgage on its books, and (ii) Lender shall be
      authorized to file UCC-1 financing statements ("UCC-1s") and such other
      documents and instruments, covering the Collateral in form suitable for
      filing and/or recording in all jurisdictions (including, without
      limitation, Australia) necessary or reasonably required by Lender to
      create or perfect Lender's interest in the Collateral, to the extent such
      creation or perfection may be accomplished by such filings, documents
      and/or instruments.

            4. Property in the Custody of Lender. Other than the exercise of
reasonable care to assure the safe custody of any Stock Certificates,
instruments or funds constituting part of the Collateral as may from time to
time be delivered into Lender's possession under this Pledge, Lender shall not
have any duty or liability to preserve the Collateral or any part thereof or any
of Pledgor's rights pertaining thereto. Lender shall be relieved of
responsibility for any portion of the Collateral upon surrendering it or
tendering surrender of it. Without limiting the generality of the foregoing,
neither Lender nor any of its respective officers, agents or employees shall be
liable (i) for failure to invest or reinvest the cash paid to Lender under this
Pledge or the Second Equitable Mortgage or for any losses incurred by reason of
investments made by Lender or the Second Equitable Mortgage or by reason of the
insolvency of any Person, or (ii) for any action taken or omitted to be taken by
Lender in good faith in accordance with the advice of counsel with respect to
any question as to the construction of any provision of this Pledge or the
Second Equitable Mortgage or any action to be taken by Lender under this Pledge
or the Second Equitable Mortgage or, in accordance with any instructions or
other notices which Lender

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believes in good faith to be properly given by Pledgor, except for any action
taken or failed to be taken as a result of the gross negligence or willful
misconduct of Lender. All investments of all or part of the Collateral by Lender
and all income and proceeds thereof shall be held in the name of Lender and
constitute part of the Collateral. All risk of loss with respect to investments
shall be on Pledgor, subject to the terms of this Paragraph 4.

            5. Representations and Warranties. Pledgor hereby represents and
warrants to Lender, as of the date hereof, as follows:

                  (a) As of November 29, 2002, (i) Pledgor will be the sole
      beneficial owner and holder of the Interest, which constitutes at least
      66% of the beneficial interests in the Company; and (ii) no party other
      than Pledgor will have any option, warrant, call, commitment or other
      right with respect to the Collateral (other than the rights of the
      Administrative Agent pursuant to the Security Agreement, the First
      Equitable Mortgage and the Intercreditor Agreement).

                  (b) As of November 29, 2002, Pledgor shall be the true, legal
      and lawful owner and holder of all Collateral (including Collateral
      acquired after such date), free and clear of any liens, pledges, security
      interests or encumbrances whatsoever, subject only to this Pledge, the
      Second Equitable Mortgage, and the Security Agreement, the First Equitable
      Mortgage, and the Intercreditor Agreement and other Permitted Encumbrances
      encumbering the Collateral.

                  (c) Pledgor is a Delaware corporation, duly formed, validly
      existing and in good standing under the laws of the State of Delaware, and
      has all requisite corporate power and authority to execute, deliver and
      perform all of its obligations set forth in this Pledge and the Second
      Equitable Mortgage. Pledgor (i) is not incorporated in any jurisdiction of
      Australia (as determined under Australian law), (ii) does not carry on
      business in Australia and (iii) for Australian tax law purposes, is not a
      resident of Australia or a non-resident of Australia carrying on business
      at or through a permanent establishment in Australia.

                  (d) This Pledge and the Second Equitable Mortgage constitutes
      the legal, valid and binding obligation of Pledgor, enforceable in
      accordance with its terms, subject only to applicable bankruptcy,
      insolvency, reorganization, moratorium or other similar laws relating to
      or affecting creditors' rights generally and general principles of equity.

                  (e) The execution, delivery and performance by Pledgor of this
      Pledge and the Second Equitable Mortgage, the exercise by Lender, subject
      to the limitations contained herein, of the voting or other rights and
      remedies provided in this Pledge in respect of the Collateral (i) have
      been duly authorized by all necessary corporate action of the Pledgor;
      (ii) do not require the approval of any Governmental Authority of the
      United States or Australia (other than the FIRB Approval) or other third
      party which have not been obtained or require any action of, or filing
      with, any Governmental Authority of the United States or Australia (other
      than the FIRB Approval) or other third party to authorize same (other than
      the filing of a UCC-1); and (iii) do not and shall not (A)

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      violate or result in the breach of any provision of law or regulation, any
      order or decree of any court or other Governmental Authority of the United
      States or Australia, (B) violate, result in the breach of or constitute an
      event of default under or conflict with any indenture, mortgage, deed of
      trust, agreement or any other instrument to which Pledgor is a party or by
      which any of Pledgor's assets (including, without limitation, the
      Collateral) are bound, except to the extent that Lender's exercise of
      voting or other rights and remedies under this Pledge violate, result in
      the breach of or constitute an event of default under or conflict with
      Section 7.09 of the Shareholders Agreement, or (C) result in the creation
      or imposition of any lien, charge or encumbrance of any nature whatsoever
      upon any of the properties or assets of Pledgor except for the Security
      Agreement, the First Equitable Mortgage and the Intercreditor Agreement.

                  (f) There is not now pending or, to the best of Pledgor's
      knowledge, threatened, any action or proceeding at law or in equity or by
      or before any Governmental Authority of the United States or Australia
      (other than the FIRB Approval) which if adversely determined would impair
      or materially adversely affect Pledgor's or Lender's interest in the
      Collateral or the value thereof or Pledgor's aggregate financial condition
      or operations.

                  (g) There is no financing statement (or similar document or
      registration under the law of any applicable jurisdiction) now on file or
      registered in any public office covering any interest of Pledgor in the
      Collateral, other than with respect to UCC financing statements filed in
      connection with the Security Agreement and financing statements or similar
      documents or registrations filed in connection with the First Equitable
      Mortgage and the Second Equitable Mortgage. There are no set-offs,
      counterclaims or defenses with respect to the Collateral and no agreement
      has been made by Pledgor or any subsidiaries of New WCG with any other
      Person with respect to the Collateral, except for the Security Agreement,
      the First Equitable Mortgage, the Intercreditor Agreement and the
      Shareholders Agreement.

                  (h) Pledgor has obtained all required consents to this Pledge,
      and the Second Equitable Mortgage, including, without limitation, the
      consent of Company and the Administrative Agent.

                  (i) In the event Pledgor changes its state of incorporation
      Pledgor shall notify Lender within two months thereafter, and furnish to
      Lender or authorize Lender to file (at Pledgor's sole cost and expense)
      and/or record any UCC-1 financing statements or similar documents or
      registrations or amendments thereto as may be reasonably requested by
      Lender in connection therewith.

            6. Further Assurances. Upon the request of Lender, Pledgor shall, at
Pledgor's sole cost and expense, execute and deliver all such further UCC-1s and
similar documents and registrations, continuation statements, assurances and
consents with respect to the pledge of the Collateral and the execution of this
Pledge and the Second Equitable Mortgage, and shall execute and deliver such
further instruments, agreements and other documents and do such further acts and
things, as Lender may reasonably request in order to more fully effectuate the
purposes of this Pledge and/or the Second Equitable Mortgage, and to obtain the
full benefits of

                                      -9-
<PAGE>

this Pledge and the Second Equitable Mortgage, and the rights and powers herein
and therein created.

            7. Attorney-in-Fact. Pledgor hereby authorizes Lender at any time to
take any action and to execute any instrument, financing statements and/or
continuation statements covering the Collateral, to evidence and perfect the
security interest created hereby and irrevocably appoints Lender as its true and
lawful attorney-in-fact, which power of attorney shall be coupled with an
interest, with full authority in the place and stead of Pledgor and in the name
of Pledgor or otherwise, from time to time, in Lender's sole and absolute
discretion, (a) for the purpose of executing such statements in the name of and
on behalf of Pledgor, and thereafter filing any such financing and/or
continuation statements and (b) to receive, endorse and collect all instruments
made payable to Pledgor representing any interest payment or other distribution
in respect of the Collateral or any part thereof and to give full discharge for
the same; provided that Lender shall not execute any document as
attorney-in-fact of Pledgor under clause (a) of this Paragraph 7 or take any
action specified in clause (b) of this Paragraph 7 unless and until an Event of
Default shall have occurred and be continuing. Nothing contained in this
Paragraph 7 shall result in the expansion of the obligations, or the reduction
of the rights, of Pledgor hereunder.

            8. Covenants and Agreements. In addition to any and all other
covenants and agreements by Pledgor under this Pledge, Pledgor further covenants
and agrees until the Obligations have been paid in full that:

                  (a) (i) the Interest shall continue to constitute not less
      than 66% of the total beneficial interests in the Company and the Stock
      Certificates shall be in certificated form; and (ii) Pledgor shall defend
      the Collateral against the claims and demands of all persons whomsoever
      and shall defend Lender's security interest therein against all material
      claims and demands of any other person or party at any time claiming the
      same or any interest therein adverse to Lender, subject to the rights,
      title and interest of the Administrative Agent pursuant to the Security
      Agreement and the First Equitable Mortgage.

                  (b) Pledgor shall not directly or indirectly further assign,
      pledge, hypothecate, transfer, exchange, grant any option or security
      interest in and with respect to, or otherwise dispose of or encumber, the
      Collateral or any beneficial or other interest therein except (i) to the
      Administrative Agent, subject to and in accordance with the Security
      Agreement and other Permitted Encumbrances encumbering the Collateral or
      (ii) pursuant to a Permitted Disposition.

                  (c) Pledgor shall from time to time pay and discharge, all
      taxes, assessments and charges imposed on the Collateral by any
      Governmental Authority, except to the extent failure to do so could not
      reasonably be expected to have a material adverse affect on the Collateral
      or Lender's security interest therein; Pledgor may contest any such taxes,
      assessments or governmental charges in good faith by appropriate
      proceeding where the failure to do so could not reasonably be expected to
      materially and adversely affect the Collateral or Lender's security
      interest therein.

                                      -10-
<PAGE>

                  (d) Pledgor shall give Lender notice promptly after any
      officer of Pledgor with executive responsibilities with respect to Pledgor
      obtains actual knowledge thereof, (i) of the occurrence of any breach by
      Pledgor of its obligations under this Pledge and/or the Second Equitable
      Mortgage and (ii) of any action or proceeding to which Pledgor is a party,
      or affecting Pledgor, except to the extent failure to do so could not
      reasonably be expected to have a material adverse affect on Pledgor or the
      Collateral or Lender's security interest therein.

                  (e) Pledgor shall deliver to Lender after the occurrence and
      during the continuance of any Event of Default or as otherwise required by
      Paragraph 11 hereof any and all Distributions payable or paid to Lender
      pursuant to the terms of this Pledge and shall deliver to Lender all
      principal, interest and other sums due or paid under any loans by Pledgor
      to Company. Pledgor shall promptly deliver to Lender all notes or other
      evidence of indebtedness with respect to such loans.

                  (f) Pledgor shall not permit any Voluntary Bankruptcy Event to
      occur without the express prior written consent of Lender.

                  (g) Pledgor shall not permit the liquidation, dissolution,
      winding up or discontinuation, in whole or in part, of Pledgor or Company
      without the express prior written consent of Lender.

                  (h) Pledgor agrees, notwithstanding any provision in its or
      the Company's organizational documents or in the Shareholders Agreement,
      (i) not to take any action (or fail to take an action which failure would
      have such effect) to terminate, dilute, impair or otherwise adversely
      affect in any material respect Lender's legal rights, remedies or
      interests under this Pledge or the Second Equitable Mortgage (provided
      that the Pledgor shall not be in default of such obligation if (x) the
      Pledgor or the Company, in exercising its reasonable business judgment,
      acts in good faith with due regard to the terms hereof and the interests
      of Lender hereunder or (y) if Pledgor or the Company enters into and
      consummates a transaction permitted under Section 8(b) hereof) and shall
      cause the Company to amend (in form and substance reasonably satisfactory
      to Lender) its organizational documents to similarly so provide and to
      preclude any such action or inaction having such effect, and to obtain all
      necessary consents and perform such other actions which are a prerequisite
      to such amendments and (ii) to otherwise promptly comply with Lender's
      reasonable requests to ensure that the Company is and remains a special
      purpose entity (the purpose and activities of which shall be limited to
      owning the stock of PowerTel).

                  (i) Pledgor shall provide twenty (20) days prior notice to
      Lender if at any time after the date hereof it intends (i) be incorporated
      in any jurisdiction of Australia, (ii) carry on business in Australia (as
      determined under Australian law) or (iii) for Australian tax purposes,
      become a resident of Australia or a non-resident of Australia carrying on
      business at or through a permanent establishment in Australia.

                                      -11-
<PAGE>

                  (j) The acquisition of all or any portion the Collateral by
      the Pledgor does not require notification to the Treasurer of the
      Commonwealth of Australia under section 26 of the Foreign Acquisitions and
      Takeover Act 1975.

            9. Indemnification. Pledgor shall and does hereby agree to indemnify
Lender for and to hold Lender harmless from and against any and all loss, cost,
damage, liability or expense (including without limitation attorneys' fees and
disbursements reasonably incurred) which arise from (a) Pledgor's failure to
comply with any of its obligations hereunder or under the Second Equitable
Mortgage and/or (b) any and all claims and demands whatsoever which may be
asserted against Lender by reason of any alleged obligations or undertakings on
its part to perform or discharge any of the terms, covenants or agreements
contained in the Pledge and/or the Second Equitable Mortgage, except to extent
any claims and demands arise from Lender's gross negligence or willful
misconduct. Should Lender incur any such liability, loss or damage, the amount
thereof shall be deemed part of the Obligations and secured hereby and Pledgor
shall reimburse Lender therefor promptly upon receipt of written demand of
Lender specifying such liability, loss or damage in reasonable detail.

            10. Events of Default; Remedies.

                  (a) If any "Event of Default" shall occur under (and as
      defined in) the Mortgage, the same shall be deemed an "Event of Default"
      hereunder and under the Second Equitable Mortgage.

                  (b) Upon the occurrence and during the continuance of an Event
      of Default, Lender shall have all of the following remedies:

                  (i) Lender shall have all of the rights and remedies provided
            under this Pledge, the Second Equitable Mortgage and/or to a secured
            party by the Uniform Commercial Code in effect in the State of New
            York, the domicile of Pledgor and any other jurisdiction in which
            the Collateral may be located at that time;

                  (ii) Lender, except to the extent prohibited by law, without
            in any manner waiving such Event of Default, may, at its option,
            without further notice and without regard to the adequacy of any
            security for the Obligations, either in person or by agent, with or
            without bringing any action or proceeding, collect and receive all
            Distributions;

                  (iii) Lender, except to the extent prohibited by law, without
            the necessity for demand of performance or other demand,
            advertisement or notice of any kind of time and place of public or
            private sale to or upon any other person (all and each of which
            demands, advertisements and/or notices are expressly waived by
            Pledgor) shall have the right to forthwith collect, receive,
            appropriate and realize upon the Collateral, or any part thereof,
            transfer and register in its name or in the name of its nominee the
            whole or any part of the Collateral, exchange certificates or
            instruments representing or evidencing Collateral (if any) for
            certificates or instruments of smaller or larger denominations, and
            exercising the

                                      -12-
<PAGE>

            voting rights thereto, and/or may forthwith sell, assign, give an
            option or options to purchase, contract to sell or otherwise dispose
            of and deliver the Collateral or any part thereof, in one or more
            portions at public or private sale or sales, upon such terms and
            conditions as it may deem advisable and at such prices as it may
            deem best, for cash, for credit or for future delivery without
            assumption of any credit risk, with the right of Lender upon any
            such sale or sales, public or private, to purchase the whole or any
            part of the Collateral so sold. In connection with any such sale,
            assignment, option, contract, disposition or delivery:

                        (A) the sale of Collateral shall have been made in a
                  commercially reasonable manner if conducted in conformity with
                  reasonable commercial practices of banks disposing of similar
                  property, but in any event, Lender may sell on such terms as
                  Lender may choose, without assuming any credit risk and
                  without any obligations to advertise. Further, it shall be
                  deemed reasonable for Lender to hold such a sale in the City
                  of Tulsa or any other metropolitan area in the United States.
                  Pledgor hereby waives any claims against Lender arising by
                  reason of the fact that the price at which any of the
                  Collateral may have been sold at any private sale was less
                  than the price that might have been obtained at a public sale,
                  even if Lender accepts the first offer received and does not
                  offer the Collateral to more than one Person;

                        (B) Lender may apply the proceeds of any such sale or
                  disposition to the satisfaction of Lender's attorneys' fees
                  and expenses reasonably incurred and any other costs and
                  expenses reasonably incurred in connection with Lender's
                  retaking, holding, preparing for sale, and selling of the
                  Collateral; and

                        (C) in the event that notice is necessary, written
                  notice mailed to Pledgor at the address given below five (5)
                  Business Days prior to the date of public sale of the
                  Collateral subject to the lien and security interest created
                  herein or prior to the date after which private sales or any
                  other disposition of said Collateral will be made shall
                  constitute reasonable notice, but notice given in any other
                  reasonable manner or at any other reasonable time shall be
                  sufficient;

                  (iv) Lender may, in its sole and absolute discretion, make any
            compromise or settlement deemed desirable by Lender and/or extend
            the time of payment or delivery, arrange for payment or delivery in
            installments, or otherwise modify the terms of, or release, any of
            the Collateral, and without otherwise discharging or affecting the
            Obligations, the Collateral or the security interest granted herein;

                  (v) upon notice to Pledgor by Lender stating that an Event of
            Default has occurred and is continuing (the "NOTICE OF DEFAULT"),
            all rights of Pledgor to exercise the voting and other rights which
            Pledgor would otherwise be entitled to exercise pursuant to
            Paragraph 11(a) and all other rights of Pledgor with respect to the
            Collateral shall cease, all such rights shall thereupon become
            vested in

                                      -13-
<PAGE>

            Lender and Lender shall thereupon have the sole right to exercise
            such voting and other rights;

                  (vi) all rights of Pledgor to receive Distributions which
            Pledgor would otherwise be authorized to receive and retain pursuant
            to Paragraph 11(b) herein shall cease, and all such rights shall
            thereupon become vested in Lender, which shall thereupon have the
            sole right to receive and hold such Distributions as part of the
            Collateral;

                  (vii) all Distributions which are received by Pledgor contrary
            to the provisions of Paragraph 10(b)(vi) shall be received in trust
            for the benefit of Lender, segregated from other funds of Pledgor
            and forthwith paid over to Lender as part of the Collateral in the
            form received (with any necessary endorsement); and

                  (viii) in order to permit Lender to exercise the voting and
            other rights which Lender may be entitled to exercise pursuant to
            Paragraph 10(b)(v), (vi) and (vii), and to receive all Distributions
            which Lender may be entitled to receive under such subparagraphs,
            Pledgor shall, if necessary, upon written notice from Lender, from
            time to time, execute and deliver to Lender any instruments as
            Lender may reasonably request and in form reasonably satisfactory to
            Lender in all respects.

            11. Voting Rights; Distributions; Etc. At all times, except upon the
occurrence and during the continuance of an Event of Default:

                  (a) Pledgor shall be entitled to exercise any and all voting
      and other consensual rights pertaining to the Collateral or any part
      thereof for any purpose not prohibited by the terms hereof.

                  (b) Pledgor shall be entitled to receive and retain any and
      all Distributions, other than any and all:

                  (i) Distributions paid or payable other than in cash in
            respect of, and instruments and other property received, receivable
            or otherwise distributed in respect of, or in exchange for, any of
            the Collateral;

                  (ii) Distributions paid or payable in cash in respect of any
            of the Collateral in connection with a partial or total liquidation
            or dissolution or in connection with a reduction of capital, capital
            surplus or paid-in surplus; and

                  (iii) cash paid, payable or otherwise distributed in
            redemption of, or in exchange for, any of the Collateral,

      all of which shall be, and all of which shall be forthwith delivered to
      Lender to hold as, part of the Collateral and, if received by Pledgor,
      shall be received in trust for the benefit of Lender, segregated from the
      other property or funds of Pledgor, and forthwith

                                      -14-
<PAGE>

      delivered to Lender as part of the Collateral in the form received (with
      any necessary endorsement).

            12. Lender's Rights. Lender may, at any time, acting in each
instance in Lender's sole and absolute discretion (subject to the terms of the
Loan Documents):

                  (a) extend or change the time of payment and/or the manner,
      place or terms of payment of all or any of the Obligations;

                  (b) exchange, release and/or surrender all or any of the
      Mortgaged Property, which is now or may hereafter be held by Lender in
      connection with the Obligations;

                  (c) sell and/or purchase all or any of the Mortgaged Property
      and dispose of the proceeds thereof; and

                  (d) enter into and consummate any sales, pledges and/or
      transfers of its interests in the Loan and this Pledge and the other Loan
      Documents as provided in the Notes.

            13. Release. Lender may release or surrender at any time all or any
of the other security for the Obligations, release any party primarily or
secondarily liable thereon and may apply any other security held by it in
satisfaction of the Obligations without prejudice to its rights under this
Pledge.

            14. Continuing Security Interest; Termination.

                  (a) This Pledge shall create a continuing security interest in
      the Collateral and, unless terminated by operation of law, shall remain in
      full force and effect and be binding upon Pledgor and the legal
      representatives, successors and assigns of Pledgor until the Obligations
      have been paid in full and shall be reinstated, as applicable, if at any
      time payment or performance of the Obligations, or any part thereof, is
      rescinded or reduced in amount or must otherwise be restored or returned
      by any obligee of such Obligations all as though such payment or
      performance had not been made.

                  (b) Upon the payment in full of the Obligations, the security
      interest in the Collateral pursuant to this Pledge shall automatically
      terminate without any further act of Pledgor or Lender being required, and
      all rights to the Collateral as Lender may hold and shall revert to
      Pledgor. Upon any such termination, Lender will return to Pledgor such of
      the Collateral as shall not have not been sold or otherwise applied
      pursuant to the terms hereof. In addition, Lender will execute,
      acknowledge (where applicable) and deliver such satisfactions, releases
      and termination statements as Pledgor shall reasonably request.

            15. Notices. Except as otherwise expressly provided herein, all
notices, requests, demands or other communications provided for hereunder shall
be in writing and

                                      -15-
<PAGE>

mailed, transmitted via facsimile, or delivered via courier service: if to
Pledgor, at its address set forth in the first paragraph hereof, Attention:
General Counsel, facsimile: (918) 547-2360, with a copy to Leucadia National
Corporation, 315 Park Avenue South, New York, NY 10010, Attention: Tom Mara,
facsimile (212) 598-3241; if to Lender, at its address set forth in the first
paragraph hereof, with copy to White & Case LLP at 1155 Avenue of the Americas,
New York, NY 10036, Attention: John Reiss, Esq. and Roger Noble, Esq., facsimile
(212) 354-8113; or at such other address as shall be designated by such party in
a written notice to the other parties hereto. All notices required or permitted
hereunder shall be given either by (a) personal delivery, (b) professional
expedited delivery service (postage prepaid), (c) facsimile (provided that a
confirmation copy immediately follows by any of the other methods of delivery
permitted herein), or (d) certified mail return receipt requested (postage
prepaid), and if so given, shall be deemed to have been given either at the time
of personal delivery, or, in the case of expedited delivery service, as of the
date of delivery or the date of attempted or refused delivery at the address or
in the manner provided herein, or, in the case of facsimile with confirmation as
required above, upon receipt or, in the case of certified mail, five (5)
Business Days after posting with the U.S. Postal Service.

            16. Marshalling. Lender shall not be required to marshal any present
or future security for (including but not limited to this Pledge), or guaranties
of, the Obligations or any of them, or to resort to such security or guaranties
in any particular order; and all of the rights of Lender hereunder and in
respect of such security and guaranties shall be cumulative and in addition to
all other rights, however existing or arising. To the extent that it lawfully
may, Pledgor hereby agrees that it will not invoke any law relating to the
marshaling of collateral which might cause delay in or impede the enforcement of
Lender's rights under this Pledge or the Second Equitable Mortgage and, to the
extent that it lawfully may, Pledgor hereby irrevocably waives the benefits of
all such laws.

            17. Pledgor's Obligations Not Affected. The obligations of Pledgor
hereunder shall remain in full force and effect without regard to, and shall not
be impaired by (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of Pledgor; (b) any exercise
or nonexercise, or any waiver, by Lender of any right, remedy, power or
privilege under or in respect of the Obligations or any security therefor
(including this Pledge); (c) any amendment to or modification of any instrument
(other than this Pledge) securing any of the Obligations; or (d) the taking of
additional security for, or any guaranty of, any of the Obligations or the
release or discharge or termination of any security or guaranty for any of the
Obligations; whether or not Pledgor shall have notice or knowledge of any of the
foregoing.

            18. Instructions to Company. If an Event of Default has occurred and
is continuing which entitles Lender to receive Distributions with respect to the
Interest, Lender may give written notice to such effect to Company (with a copy
to Pledgor) and direct Company to make further Distributions with respect to the
Collateral directly to Lender. Pledgor hereby instructs Company to honor such
directions as Company may receive from Lender with respect to the payment of
Distributions, whether in cash or in kind, with respect to the Collateral. This
paragraph is intended to authorize Company to rely upon directions from Lender
and is not intended to confer any additional authority upon Lender beyond that
conferred elsewhere in this

                                      -16-
<PAGE>

Pledge or otherwise. Pledgor also directs Company not to transfer any of the
Collateral (other than pursuant to a transaction permitted under Paragraph 8(b))
without the consent of Lender, which consent Lender may grant or withhold in its
sole discretion. In addition, Pledgor agrees that, except in relation to the
Security Agreement, it will not transfer "control" (as defined in Section
8-106(c) of the Uniform Commercial Code of the State of New York) over the
Interests to any Person other than Lender, except pursuant to a transaction
permitted under Paragraph 8(b) or as expressly contemplated in the
Acknowledgment.

            19. Miscellaneous.

                  (a) Severability. In the event any one or more of the
      provisions contained in this Pledge or their application to any person or
      circumstance shall for any reason be held to be invalid, illegal or
      unenforceable in any respect, such invalidity, illegality or
      unenforceability shall not affect any other provision hereof, but this
      Pledge shall be construed as if such invalid, illegal or unenforceable
      provision had never been contained herein.

                  (b) Successors and Assigns. This Pledge is binding upon and
      inures to the benefit of Pledgor and Lender and their respective
      successors and permitted assigns. Pledgor shall not voluntarily, or by
      operation of law, assign or transfer any interest which it may have under
      this Pledge without the prior written approval of Lender. Lender may
      assign or otherwise transfer all or any portion of its rights hereunder to
      any other person or entity, and such other person or entity shall
      thereupon become vested with all of the benefits granted to Lender herein.
      The Pledgor agrees to deliver to the Lender or its nominee an opinion of
      Atanaskovic Hartnell or another law firm reasonably acceptable to Lender
      (at the Pledgor's sole cost and expense) addressed to any successor or
      assign of Lender, opining as to the enforceability of the Second Equitable
      Mortgage, and such other matters incident to the transactions contemplated
      thereby, which opinion shall be in form and substance reasonably
      satisfactory to the Lender.

                  (c) Entire Agreement; Amendment. This Pledge and the other
      documents, instruments and/or agreements contemplated hereby (including
      without limitation, the Intercreditor Agreement) embody the final, entire
      agreement among the parties hereto and supersede any and all prior
      commitments, agreements, representations, and understandings, whether
      written or oral, relating to the subject matter hereof and thereof and may
      not be contradicted or varied by evidence of prior, contemporaneous, or
      subsequent oral agreements or discussions of the parties hereto. All prior
      agreements and understandings, oral or written, are merged into this
      Pledge and the other documents, instruments and/or agreements contemplated
      hereby. No provision of this Pledge may be changed, waived, discharged or
      terminated orally or by any other means except an instrument in writing
      signed by the party against whom enforcement of the change, waiver,
      discharge or termination is sought.

                  (d) Captions. The captions or headings of the paragraphs in
      this Pledge are for convenience of reference only and shall not control or
      affect the meaning or construction of any of the terms or provisions
      hereof.

                                      -17-
<PAGE>

                  (e) Jurisdiction; Venue. Pledgor irrevocably consents to the
      jurisdiction of the State and Federal Courts of New York located in New
      York City (a "NEW YORK FORUM") in any and all actions and proceedings
      whether arising hereunder or under any other Loan Document, and
      irrevocably agrees to service or process by certified mail, return receipt
      requested, to the address of Pledgor set forth herein. Pledgor affirms and
      covenants that this agreement is a knowing, voluntary and conscious
      decision made by Pledgor with full advice of counsel. Pledgor (i) waives
      and shall not interpose any objections of forum non conveniens, or to
      venue, (ii) waives any right to seek to remove any proceeding commenced by
      Lender in any New York Forum to any other forum or venue, and (iii) waives
      any right to object to Lender seeking to remove to a New York Forum any
      proceeding commenced by Pledgor in any forum or venue other than a New
      York Forum.

                  (f) No Waiver. No failure or delay on the part of Lender in
      exercising any power or right hereunder or under the Second Equitable
      Mortgage shall operate as a waiver thereof or a waiver of any other term,
      provision or condition hereof, nor shall any single or partial exercise of
      any such right or power preclude any other or further exercise thereof or
      the exercise of any other right or power hereunder. All rights and
      remedies of Lender hereunder and under the Second Equitable Mortgage are
      cumulative and shall not be deemed exclusive of any other rights or
      remedies provided by law, or in any other Loan Documents.

                  (g) Counterparts. This Pledge may be executed in any number of
      counterparts, each of which when so executed shall be deemed to be an
      original, and all such counterparts shall together constitute one and the
      same instrument. An original executed counterpart delivered by facsimile
      shall be deemed to be an original executed counterpart for all purposes
      hereunder.

                  (h) Governing Law. This Pledge and the Acknowledgment shall be
      governed by, and construed and enforced in accordance with the laws of the
      State of New York, without reference to conflicts of laws principles. To
      the fullest extent permitted by applicable law, Pledgor hereby
      unconditionally and irrevocably waives any claim to assert that the laws
      of any other jurisdiction govern this Pledge, and Pledgor affirms,
      warrants and covenants that this agreement is a knowing, voluntary and
      conscious decision made by Pledgor with full advice of counsel.

                  (i) Security Agreement. This Pledge is intended to constitute
      and is a "security agreement" under the Uniform Commercial Code of the
      State of New York.

                  (j) Costs and Expenses. Pledgor agrees to pay any and all
      costs and expenses reasonably incurred by Lender upon the occurrence and
      during the continuance of an Event of Default in enforcing any rights or
      remedies under this Pledge and/or the Second Equitable Mortgage
      (including, without limitation, court costs, reasonable attorneys' fees
      and disbursements) and any such costs or expenses paid or incurred by
      Lender shall accrue interest at the Default Rate from the date paid or
      incurred by Lender until the date repaid by or on behalf of Pledgor.

                                      -18-
<PAGE>

                  (k) Certain Rights and Remedies. Lender may exercise its
      rights and remedies under the Uniform Commercial Code and/or otherwise
      under this Pledge and/or the Second Equitable Mortgage or pursuant to law
      or equity, it being expressly agreed that Lender may, at its sole option,
      exercise such right with respect to less than all of the Collateral, as
      Lender elects in its sole discretion, leaving unexercised its rights with
      respect to the remainder of the Collateral and in such order as Lender
      shall determine in its sole discretion; provided, however, that such
      partial exercise (or priority of exercise) shall in no way restrict or
      jeopardize Lender's right to exercise its right with respect to all or
      another portion of the remainder of the Collateral at a later time or
      times.

                  (l) Application. If Lender either receives any amounts in
      connection with the sale of the Collateral or any proceeds of the
      Collateral, such sums shall be applied against the Obligations as Lender
      may determine in its sole discretion.

                  (m) Intercreditor Agreement; First Equitable Mortgage. This
      Pledge, including without limitation the exercise of any rights and
      remedies (including voting rights) specified in Paragraphs 10, 11, 12 and
      18 hereof, shall be subject in all respects to the terms and conditions of
      the Intercreditor Agreement. In the event of any inconsistency or conflict
      between the terms of this Pledge or the Acknowledgment on the one hand,
      and the terms of the Intercreditor Agreement on the other hand, the terms
      of the Intercreditor Agreement shall govern. In the event of any
      inconsistency or conflict between the terms of this Pledge and the Second
      Equitable Mortgage, the terms of this Pledge shall govern.

                            [SIGNATURE PAGE FOLLOWS]

                                      -19-
<PAGE>

      IN WITNESS WHEREOF, this Pledge has been executed by the parties as of the
date first above written.

                                           PLEDGOR:

                                           CG AUSTRIA, INC.,
                                           a Delaware corporation

                                           By: /s/ HOWARD S. KALIKA
                                              ------------------------------
                                              Name:   Howard S. Kalika
                                              Title:  Treasurer

                                           LENDER:

                                           WILLIAMS HEADQUARTERS BUILDING
                                           COMPANY, a Delaware corporation

                                           By: /s/ MARK W. HUSBAND
                                              ------------------------------
                                              Name: Mark W. Husband
                                              Title: Vice President

The undersigned hereby acknowledges and agrees to recognize the terms and
provisions of this Pledge and the security interest and other rights granted to
Lender herein:

WILTEL COMMUNICATIONS PTY. LIMITED,
an Australian corporation

By: /s/ HOWARD S. KALIKA
   ------------------------------
   Name:  Howard S. Kalika
   Title: Vice President

<PAGE>

                                                                       EXHIBIT A

                    Acknowledgment, Consent And Agreement Of
                       WILTEL COMMUNICATIONS PTY. LIMITED

            WILTEL COMMUNICATIONS PTY. LIMITED in its role as issuer of the
Interests (the "COMPANY"), subject in each case to the Intercreditor Agreement,
the Security Agreement and the First Equitable Mortgage, (i) acknowledges
receipt of and consents to the terms and provisions of (a) the Pledge Agreement
dated as of November 27, 2002 (the "PLEDGE AGREEMENT") to which this
Acknowledgment, Consent and Agreement is attached (terms used herein not defined
herein shall have the meanings ascribed to such terms in the Pledge Agreement)
and (b) the Second Equitable Mortgage; (ii) agrees to pay Distributions with
respect to the Interests in accordance with the directions of Lender with the
consent of the Administrative Agent pursuant to the Intercreditor Agreement, the
Security Agreement and the First Equitable Mortgage following the occurrence and
during the continuance of an Event of Default; (iii) acknowledges that the grant
of the security interest under the Pledge Agreement and under the Second
Equitable Mortgage has been registered on the books and records of the Company
and agrees not to transfer any of the Interests without the consent of Lender,
except to the extent such consent is not required pursuant to Paragraph 8(b) of
the Pledge; (iv) agrees that it will comply with instructions regarding the
Collateral originated by Lender following the occurrence and during the
continuance of an Event of Default without the further consent of the registered
owner of the Interests, including CG Austria, Inc. ("OWNER"); (v) agrees that it
will not comply or agree to comply with instructions regarding the Collateral
originated by any person other than the Owner, Lender, the Administrative Agent
pursuant to the Security Agreement, the First Equitable Mortgage and the
Intercreditor Agreement, any applicable Governmental Authority or a court of
competent jurisdiction; (vi) agrees that unless and until payment in full of the
Obligations it will not register any person other than Owner as the registered
owner of the Interest, unless otherwise directed by the Administrative Agent
pursuant to the Security Agreement and the First Equitable Mortgage or Lender
with the consent of the Administrative Agent pursuant to the Security Agreement
and the First Equitable Mortgage; (vii) agrees that Lender does not undertake
any obligations or liabilities of any nature whatsoever arising from the
Company's Articles of Association or pertaining to the organization, formation,
creation, operation or conduct of the Company or of any of its constituents
solely by reason of the Pledge Agreement or the exercise of its rights
thereunder; (viii) agrees that Lender will not by reason of the Pledge Agreement
and/or the Second Equitable Mortgage or the exercise of its rights thereunder be
liable to any person, firm, corporation or entity for any injury or damages of
any nature whatsoever sustained by reason of any act of omission or commission
of the Company or any of its constituents or by reason of the grant of the
security interest in the Collateral, except in each case to the extent any
injury or damage is caused by Lender's gross negligence or willful misconduct;
(ix) agrees, notwithstanding any provision in the Company's organizational
documents or the Shareholders Agreement, not to take any action to (or fail to
take any action which failure would have such effect) terminate, dilute, impair
or otherwise adversely affect in any material respect Lender's legal rights,
remedies or interests under the Pledge Agreement or the Second Equitable
Mortgage (provided that the Company shall not be in default of such obligation
(x) if the Company, in exercising its reasonable business judgment, acts in good
faith with due regard to the terms thereof and the interests of Lender
thereunder or (y) if the Company enters into and consummates a transaction
permitted under Paragraph 8(b) of the Pledge) or under any document, instrument
or agreement executed in reliance on the Pledge Agreement or the Second
Equitable Mortgage and to amend (in form and substance reasonably satisfactory
to Lender) its organizational documents and any other relevant documents to

<PAGE>
                                                                       Exhibit A
                                                                          Page 2

similarly so provide and to preclude any such action or inaction having such
effect, and to use all reasonable efforts to obtain all necessary consents and
perform such other actions which are a prerequisite to such amendments and to
otherwise comply with Lender's reasonable requests to ensure that the Company is
a special purpose entity (the purpose and/or activities of which shall be
limited to owning the stock of PowerTel) and that Lender's security interest in
the Collateral is not adversely affected by any action or inaction of Pledgor or
the Company; (x) acknowledges that the pledge by Owner and the security interest
of Lender under the Pledge Agreement is subject and subordinate to the security
interest granted to the Administrative Agent pursuant to the Security Agreement
and the First Equitable Mortgage, pursuant to the terms of the Intercreditor
Agreement; and (xi) agrees that, notwithstanding anything to the contrary
contained in the Shareholders Agreement or the Company's organizational
documents in the event Lender exercises its remedies under the Pledge Agreement
and/or the Second Equitable Mortgage and forecloses or otherwise realizes on the
Collateral and sells the Interests, the purchaser of such Interest will
automatically become a shareholder in the Company.

Dated as of:                       WILTEL COMMUNICATIONS PTY. LIMITED,
November 27, 2002                       an Australian corporation

                                   By: /s/ HOWARD S. KALIKA
                                       -------------------------------------
                                       Name:  Howard S. Kalika
                                       Title: Vice President<PAGE>
                                                                  EXHIBIT 10.43

CONFIDENTIAL PORTION MARKED [*************] HAS BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.

                                 AMENDMENT NO. 1
                                       TO
                            MASTER ALLIANCE AGREEMENT

         This First AMENDMENT ("Amendment No. 1") to the Master Alliance
Agreement effective as of February 8, 1999 ("MAA") is made and entered into as
of September 23, 2002, by and between Williams Communications, LLC, a Delaware
limited liability company previously formed as Williams Communications, Inc.
("Williams"), and SBC Communications Inc., a Delaware corporation ("SBC").
Williams and SBC may be referred to individually as "Party" or collectively as
the "Parties."

         WHEREAS, the Parties desire to amend the MAA as set forth below;

         NOW, THEREFORE, in consideration of the premises and covenants set
forth herein, Williams and SBC agree as follows:

         1.       Amendments. The MAA is hereby amended as follows:

         (a)      Preamble. The first sentence of the preamble to the MAA is
                  amended to read in its entirety as follows:

                  "THIS MASTER ALLIANCE AGREEMENT (this "Agreement") between
                  Williams Communications, LLC (previously formed as Williams
                  Communications, Inc.) ("Williams"), a Delaware limited
                  liability company, and SBC Communications Inc., a Delaware
                  corporation, ("SBC"), is effective February 8, 1999 (the
                  "Effective Date")."

         (b)      Section 3.1.1. The first sentence of Section 3.1.1 of the MAA
                  is amended to read in its entirety as follows:

                  "The Parties or their Affiliates are entering into the
                  following agreements to implement the Alliance, in addition to
                  this Agreement: (1) a Network Development and Operations
                  Agreement ("NDOA"), (2) a Platform Services Agreement ("PSA"),
                  (3) a Transport Services Agreement ("TSA"), (4) a Sales and
                  Marketing Agreement, (5) an International Services Agreement
                  ("ISA") and International Transport Services Agreement
                  ("ITSA"), and (6) Consulting Services Agreements."

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 1 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

         (c)      Section 3.1.2. Section 3.1.2 of the MAA is amended to read in
                  its entirety as follows:

                  "Pursuant to the Alliance Agreements, in general (a) Williams
                  will provide transport and switching services in accordance
                  with the TSA, (b) SBC will provide platforms and related
                  services in accordance with the PSA, (c) Williams and SBC will
                  cross-market each others' services and (d) SBC and Williams
                  will mutually develop new features and functions and
                  geographical expansions of their telecommunications facilities
                  and associated services contemplated by this Alliance as
                  follows: (i) SBC will be primarily responsible for designing
                  and building platforms as set forth in the PSA; (ii) SBC and
                  Williams will jointly design and plan switch capabilities,
                  depending upon the nature of the switches and the time that
                  the switches need to be deployed in accordance with the NDOA;
                  (iii) Williams shall be primarily responsible for building and
                  installing the switches and developing domestic interLATA
                  transport capabilities in accordance with the TSA; (iv)
                  Williams will be primarily responsible for developing
                  international transport and voice capabilities in accordance
                  with the ISA and the ITSA; (v) Williams will be primarily
                  responsible for ordering, provisioning, engineering, capacity
                  management and operations management in accordance with the
                  TSA; and (vi) SBC will be primarily responsible for providing
                  local access services in all portions of the United States
                  other than SBC States to the extent SBC offers such services
                  in the future. The term "Supplying Party" means (a) Williams
                  as to the products and services described in clauses (a),
                  (d)(iii), (d)(iv), and (d)(v) of the preceding sentence, (b)
                  SBC as to the products and services described in clauses (b),
                  (d)(i), (d)(vi) of the preceding sentence, and (c) Williams or
                  SBC as appropriate as to their respective products and
                  services described in clause (d)(ii) of the preceding
                  sentence. Nothing herein is intended to preclude either party
                  from marketing and selling any product or service to any user,
                  subject to Section 3.4.4, and except as provided in Section
                  12.1.1.1."

         (d)      Section 3.3. Section 3.3 of the MAA is amended to read in its
                  entirety as follows:

                  "3.3.1. The Parties will endeavor to ensure that the
                  telecommunications facilities and associated services
                  contemplated by this Alliance are constructed and operated in
                  the most cost efficient manner possible. If either SBC or
                  Williams has been

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 2 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  designated the Supplying Party for a product or service, then
                  whenever the other Party needs such product or service (the
                  "Supplied Party"), such Supplied Party will seek to obtain the
                  needed product or service from the Supplying Party as set
                  forth in this Section 3.3. In such case, the Supplying Party
                  shall, except as set forth in Section 3.7 hereof and subject
                  to existing contracts and arrangements with third parties in
                  existence as of the Effective Date of this Agreement and as
                  set forth on Exhibit B, in all cases be the provider to the
                  Supplied Party of the products or services so long as the
                  Supplying Party is offering Alliance Pricing, quality
                  comparable to competitive products and services (including
                  SLAs), and commercially reasonable terms and conditions to the
                  Supplied Party.

                  3.3.2. For purposes of this Section 3.3, Williams shall be the
                  Supplying Party and SBC shall be the Supplied Party of the
                  following Services: (i) On-Net1 InterLATA Layer 1 transport
                  services including private line services and wave services to
                  be provided pursuant to the applicable Alliance Agreement, but
                  solely to the extent that such transport services are
                  described in such Alliance Agreement, and the characteristics
                  and technical specifications for such services have been set
                  forth in the applicable specifications exhibit (e.g.
                  comparable in substance and format to Exhibit B of the TSA)
                  attached thereto, as amended from time to time in writing by
                  mutual agreement of the parties (the "Layer 1 Services"); (ii)
                  to the extent not provided by SBC for itself pursuant to
                  Section 3.7, On-Net InterLATA Layer 2 data services including
                  ATM Services, Frame Relay Services, and wide area gigabit
                  ethernet services (but specifically excluding Layer 3 services
                  and above to be provided pursuant to the terms and conditions
                  set forth in the applicable Alliance Agreement, but solely to
                  the extent that such services are described in such Alliance
                  Agreement, and the characteristics and technical
                  specifications for such services have been set forth in the
                  applicable specifications exhibit (e.g. comparable in
                  substance and format to Exhibit B of the TSA) attached
                  thereto, as amended from time to time in writing by mutual
                  agreement of the parties (the "Layer 2 Services"); and (iii)
                  InterLATA voice services to be provided pursuant to the TSA or
                  ITSA, but solely to the extent that

----------

         1 As used in this Agreement, the term "On-Net" and the term "Off-Net"
         shall have the same meaning as ascribed to them in the TSA.

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 3 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  such services are described in such Alliance Agreement, and
                  the characteristics and technical specifications for such
                  services have been set forth in the applicable specifications
                  exhibit (e.g. comparable in substance and format to Exhibit B
                  of the TSA) attached thereto, as amended from time to time in
                  writing by mutual agreement of the parties ("Voice Services")
                  (collectively the "Williams Supplied Services"). SBC shall be
                  the Supplying Party and Williams shall be the Supplied Party
                  with respect to platform and related services provided
                  pursuant to the PSA (the "SBC Supplied Services"). With
                  respect to any Williams Supplied Services that are Off-Net,
                  SBC may request that Williams arrange for such Services on its
                  behalf, but is not under an obligation to do so, subject to
                  the procedure for Off-Net Direct Purchases set forth below.
                  With respect to all Layer 1 Services whether first considered
                  On-Net or Off-Net, SBC shall seek to obtain such Service or
                  product from Williams. If Williams informs SBC that the
                  requested Service or product cannot be provided On-Net, SBC
                  shall be permitted to seek such Off-Net Service or product
                  from any third party directly ("Off-Net Direct Purchases"),
                  provided that SBC shall deliver to Williams a quarterly report
                  detailing all Off-Net Direct Purchases by LATA pairs and
                  further provided that SBC and Williams will, to the extent
                  commercially practicable, make such Off-Net Service available
                  to the other [********* ********************************].

                  Notwithstanding the foregoing, SBC and Williams shall
                  negotiate in good faith the applicable characteristics and
                  technical specifications of wave services or gigabit ethernet
                  (wide area) services at such time as Williams shall notify SBC
                  that (i) it is prepared to offer such services as the
                  Supplying Party to SBC and (ii) has the technical capability
                  to offer such services as required by SBC, and the parties
                  shall amend the applicable Alliance Agreement, including the
                  service specifications exhibit thereto, to reflect the
                  addition of wave services and gigabit ethernet (wide area)
                  services and such characteristics and technical
                  specifications.

                  Nothing in this Section 3.3.2 shall be construed to limit
                  either Party's rights or obligations as set forth in that
                  certain letter agreement between Williams Local Network, Inc.
                  and SBC Telecom, Inc. dated June 9, 2000.

                  3.3.3. Quality of Service Standard. In the event that either
                  Party fails to meet the required Quality of Service Standard
                  as set forth in an applicable Alliance Agreement ("QoS
                  Standard") with

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 4 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  respect to a particular Service or product,
                  [************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *********************************].

                  3.3.4. Notwithstanding Section 3.3.2, SBC may procure from
                  third parties Service that Williams would otherwise provide,
                  in order to achieve diversity of the Service under the
                  following requirements ("Diverse Services").

                  (i) with respect to Layer 1 Services, Williams is unable to
                  provide On-Net physical diversity as defined below; or

                  (ii) Carrier diversity is requested in writing by the Supplied
                  Party's customer.

                  In such event, SBC must disclose to Williams, on a quarterly
                  basis, when such diversity is required. SBC shall have no
                  obligation to provide Williams with any of the details of any
                  customer request for carrier or physical diversity, but shall
                  disclose in general terms the size, scale and location of the
                  diversity that SBC is seeking. Williams shall be entitled to
                  an audit of SBC's compliance with this Section 3.3.4 relating
                  to physical and carrier diversity, which audit shall be
                  carried out in accordance with the provisions of

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 5 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  Article 8 below, except that (i) any such audit may be
                  performed not more frequently than quarterly, and not more
                  often than twice in any twelve month period, and (ii) SBC
                  shall not be required to retain documentation with respect to
                  its compliance with this Section 3.3.4 for more than one year.
                  In situations in which Williams is not entitled to be the
                  primary carrier, (e.g. uncompetitive QoS Standard, pricing),
                  SBC will consider Williams to fulfill diversity requirements
                  as the secondary provider.

                  For purposes of this Section 3.3.4, "physical diversity" has
                  the meaning set forth in Schedule A to this Agreement. In the
                  event that the Parties are negotiating applicable
                  characteristics and technical specifications for any Williams
                  Supplied Services or any products or services that the Parties
                  contemplate adding to the Williams Supplied Services, then the
                  Parties shall also negotiate in good faith the physical
                  diversity requirements for such product or service, and shall
                  include such diversity requirements in Schedule B to the TSA
                  or such other applicable specifications exhibit referred to in
                  Section 3.3.2 above.

                  The SBC Affiliate must stipulate at the time of order
                  placement individual design requirements pertaining to which
                  protected or unprotected circuits must be "physically diverse"
                  from one another. SBC shall be entitled to an audit of
                  Williams's compliance with this Schedule A relating to its
                  representations to SBC of the physical infrastructure related
                  to the physical diversity of two circuits, which audit shall
                  be carried out in accordance with the provisions of Article 8
                  of this Agreement, except that (i) any such audit may be
                  performed not more frequently than quarterly, and not more
                  often than twice in any twelve month period, and (ii) Williams
                  shall not be required to retain documentation with respect to
                  its compliance with these requirements for more than one year
                  after the expiration of the term of such circuits.

                  Notwithstanding the foregoing, in all events, (i) SBC would
                  use Williams Supplied Services at least equally to that of the
                  largest of the other vendors supplying Diverse Services in the
                  context of a particular request for Diverse Services; (ii) in
                  no case will the use of Diverse Services in any Services
                  Category (as defined below) in a calendar quarter exceed
                  [**************************** ********************] for all
                  Services in such Services Category based on Williams' invoices
                  to SBC for the immediately preceding quarter; and (iii) SBC
                  will not obtain a diverse circuit from another carrier if the
                  other carrier's network is not diverse

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 6 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  from Williams. "Services Category" shall mean any one of the
                  following: (a) On-Net InterLATA Layer 1 transport services as
                  described and limited in clause (i) of Section 3.3.1 above;
                  (b) InterLATA voice services, as described and limited in
                  clause (iii) of Section 3.3.1 above; or (iii) all other
                  Services.

                  3.3.5. Williams acknowledges that SBC is contemplating
                  proposing a Project (as defined below) that will build
                  interfaces into the OSS to allow SBC agreed upon access to SBC
                  customer and network data necessary to insure continuity of
                  service (the "IT Project"). Williams as Project Executor (as
                  defined below) shall use commercially reasonable efforts to
                  expedite the prompt implementation of the IT Project, as
                  specified by SBC from time to time."

         (e)      Section 3.4.1.

                  (i) The first sentence of Section 3.4.1 of the MAA is amended
                  to read in its entirety as follows:

                  "Unless otherwise provided in other Alliance Agreements, the
                  Supplying Party will make its products and services (excluding
                  Off-Net Services, unless specifically set forth in an
                  applicable Alliance Agreement) available to the Supplied Party
                  at its direct cost plus a reasonable rate of return as
                  described in this Section 3.4.1 and as may be further
                  specified in particular Alliance Agreements (the "Cost Plus
                  Model"), and subject to MFN Pricing as described in Section
                  3.4.3 (collectively, "Alliance Pricing")."

                  (ii) The following new sentence is hereby added at the end of
                  Section 3.4.1 of the MAA:

                  "Off net Services shall be made available to the Supplied
                  Party [***********************************************] except
                  where an Alliance Agreement expressly provides otherwise."

         (f)      Section 3.4.2. The following new sentence is hereby added at
                  the end of Section 3.4.2 of the MAA:

                  [************************************************************
                  *************************************************************
                  *************************************************************
                  ********************************]

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 7 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

         (g)      Section 3.4.3. The first sentence of Section 3.4.3 of the MAA
                  is amended to read in its entirety as follows:

                  [************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  *************************************************************
                  **********************************************************]

         (h)      Section 3.7. Section 3.7 of the MAA is amended to read in its
                  entirety as follows:

                  "Nothing in any Alliance Agreement shall be construed to
                  prohibit (i) either Party from using its own facilities or
                  services owned or leased as of the Effective Date or (ii) SBC
                  from using its owned or leased switching facilities, or its
                  owned transport facilities in any SBC State, regardless of
                  whether such facilities are acquired now or in the future, or
                  (iii) SBC from using its owned equipment and related assets,
                  whether located in an SBC State or otherwise, for the
                  provision of Layer 2 and higher services, regardless of
                  whether such equipment is acquired now or in the future so
                  long as Williams remains the preferred provider pursuant to
                  Article 3 hereof for the underlying Layer 1 transport, subject
                  to the provisions of this Article 3, for any purpose in lieu
                  of using Williams' facilities, provided that in the event that
                  SBC acquires any Layer 1 transport facilities in connection
                  with the acquisition of stock or assets of a
                  telecommunications carrier (other than a carrier described in
                  section 12.1.1.5 below), then SBC shall be required to offer
                  such Layer 1 transport facilities located outside of the SBC
                  States to Williams at a price equal to the fair market value
                  thereof, which offer Williams may accept or reject in its sole
                  discretion without altering SBC's preferred provider
                  obligations pursuant to Article 3 hereof with respect to Layer
                  1."

         (i)      Section 5.1. The following new Section 5.1 is hereby added to
                  the MAA and existing Sections 5.1, 5.2 and 5.3 are hereby
                  renumbered 5.2, 5.3 and 5.4, respectively (and the reference
                  in existing Section 5.2 of the MAA to Section 5.3 is amended
                  to refer to Section 5.4):

                  "5.1.    Project Process Generally

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 8 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  The process set forth in Sections 5 and 6 of this Agreement
                  which are implemented in the NDOA are intended by the Parties
                  to create a mechanism by which the Parties may, but are not
                  obligated, to work together to develop or enhance products and
                  Services contemplated by this Agreement and the other Alliance
                  Agreements. Notwithstanding anything else in this Agreement or
                  any other Alliance Agreement, neither party shall have any
                  obligation to use the Project process for the acquisition of
                  any product or Service and may pursue such Project on its own
                  or with any third party; provided, that foregoing shall not be
                  construed to relieve either of the Parties from (i) its
                  respective obligations under the preferred provider provisions
                  in Section 3.3 above, (ii) any express obligations relating to
                  Projects that have been or will be accepted by the Parties and
                  set forth in the NDOA or statements of work entered from time
                  to time pursuant to the NDOA, or (iii) any Accepted Project or
                  Mandatory Project that has already been agreed and reduced to
                  writing by the Parties."

         (j)      Section 11.3. The following new Section 11.3 is hereby added
                  to the MAA following Section 11.2 of the MAA:

                  "11.3.   Third Party Supplied Services

                  'Third Party Supplied Services' means services that have been
                  provided to SBC or its Affiliates by persons or entities other
                  than Williams or its past and present Affiliates. SBC shall
                  use commercially reasonable efforts to deliver to Williams ,
                  not later than 12 months after the Effective Date (defined for
                  the purposes of this Section 11.3 only as set forth in the
                  Second Amended Joint Chapter 11 Plan of Reorganization of
                  Williams Communications Group, Inc. and CG Austria, Inc., as
                  amended, in Chapter 11 Case No. 02-11957), purchase orders to
                  acquire from Williams (i) those services included in the Third
                  Party Supplied Services that SBC is required under this
                  Agreement to purchase from Williams, and (ii) those services
                  included in the Third Party Supplied Services that are not
                  included in clause (i) above but that SBC has elected to
                  acquire from Williams. SBC agrees that with respect to any
                  such purchase order delivered to Williams, provided that
                  Williams is able to offer such service in accordance with the
                  terms of such purchase order on a timely basis, SBC shall not:
                  (i) request a price quote from any third party for such
                  service for the purpose of having such third party supply such
                  service to SBC; or (ii) agree to purchase, or purchase, such
                  service from any third party. Williams

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 9 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  shall use commercially reasonable efforts to deliver to SBC
                  those services to be acquired from Williams pursuant to the
                  preceding sentence not later than 6 months from the date on
                  which Williams receives service orders from SBC as required by
                  the preceding sentence."

           (k)    Section 14.1. The first three sentences of Section 14.1 of the
                  MAA are amended to read in their entirety as follows:

                  "Williams is a limited liability company duly organized,
                  validly existing and in good standing under the laws of the
                  State of Delaware. Williams has all requisite power and
                  authority to enter into the Alliance Agreements and to
                  consummate the transactions contemplated thereby. All acts and
                  other proceedings required to be taken by Williams to
                  authorize the execution, delivery and performance of the
                  Agreement and the Alliance Agreements to which it is a party
                  and the consummation of the transactions contemplated thereby
                  have been duly and properly taken."

         (l)      Section 14.2. Clause (i) of Section 14.2 of the MAA is amended
                  to read in its entirety as follows:

                  "(i) conflict with or result in any violation of any provision
                  of the certificate of formation or by-laws of Williams,"

         (m)      Section 15.14. The addresses for notices set forth in Section
                  15.14 of the MAA are amended to read in their entirety as
                  follows:

                  "If to SBC:        SBC Operations, Inc.
                                     530 McCullough
                                     San Antonio, TX  78215
                                     Attn:  Yno Gonzalez, Vice President
                                     Fax:        210-886-4040
                                     Telephone:  210-554-7124

                  with a copy        SBC Operations, Inc.
                  (which shall       175 E. Houston
                  not constitute     San Antonio, TX  78205
                  notice) to:        Attn:  T. Michael Payne, Senior Vice
                                            & General Counsel
                                     Fax:        210-351-3737
                                     Telephone:  210-370-1790

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 10 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                  If to Williams:           Williams Communications, LLC
                                            One Technology Center
                                            Tulsa, OK 74103
                                            Attn:  Contract Management
                                            Fax:              918-547-0460
                                            Telephone:        918-547-6000

                  with a copy               Williams Communications, LLC
                  (which shall              One Technology Center
                  not constitute            Tulsa, OK 74103
                  notice) to:               Attn:  General Counsel
                                            Fax:              918-547-2360
                                            Telephone:        918-547-5057"

         (n)      Schedule A. A new Schedule A, in the form set forth as
                  Schedule A to this Amendment No. 1, is hereby added to the
                  MAA.

         2. Effect. Except as herein expressly amended, the MAA and any other
documents executed and delivered in connection therewith are each ratified and
confirmed in all respects and shall remain in full force and effect in
accordance with their respective terms. Upon the effectiveness of this Amendment
No. 1, each reference in the MAA to "this Agreement," "hereunder," "hereof,"
"herein," or words of like import shall mean and be a reference to the MAA as
amended hereby, and each reference to the MAA in any other document, instrument
or agreement executed and/or delivered in connection with the MAA shall mean and
be a reference to the MAA as amended hereby.

         3. Conditions to Effectiveness. This Amendment No. 1 shall be effective
immediately, subject only to the following conditions subsequent: (i) the filing
by all of the Plan Proponents (as such term is defined in the Second Amended
Joint Chapter 11 Plan of Reorganization of Williams Communications Group, Inc.
("WCG") and CG Austria, Inc. ("CG Austria") filed on August 12, 2002 with the
United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court"), in the Chapter 11 Case No. 02-11957 (the "Plan of
Reorganization")), with the written consent of The Williams Companies, Inc., of
modifications to the Plan of Reorganization and an amended Investment Agreement,
Stockholders Agreement and New WCG Charter (as such terms are defined in the
Plan of Reorganization), each substantially in the forms attached as Exhibit D
to that certain Stipulation and Agreement (the "Stipulation") dated as of
September 23, 2002 (the "Stipulation Date") among Williams, CG Austria, WCG, SBC
and the other parties thereto, (ii) the Plan of Reorganization shall have been
confirmed by the Bankruptcy Court and the Effective Date (as defined in the Plan
of Reorganization) shall have occurred on or before October 14, 2002; (iii) the
Bankruptcy Court shall have entered an order that shall have become a Final
Order (as defined in the Plan of Reorganization) on or before October 14, 2002,
approving and authorizing WCG's and CG Austria's entering into and performing
the Stipulation; and (iv) the Plan of Reorganization shall not have been
modified or amended in any manner that would affect SBC

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 11 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

or that would alter the Plan of Reorganization in any material respect without
the express prior written consent of SBC, which shall not be unreasonably
withheld (except that the Plan of Reorganization may be amended as set forth in
Exhibit D to the Stipulation without further consent from SBC). The Parties each
acknowledge and agree that the amendments and provisions set forth in Sections 1
and 2 above are not effective until the conditions subsequent set forth in
clauses (i) through (iv) in this Section 3 have been satisfied or waived in
writing by SBC. Subject to the immediately following sentence, in the event that
any of these conditions subsequent shall fail to have been satisfied or waived
by SBC in writing on or before October 14, 2002 (subject to extension as set
forth below), then this Amendment No. 1 shall be null and void, ab initio, and
the Parties shall be restored to their respective rights and obligations as in
existence immediately prior to the Stipulation Date. In the event that Section
4.2 of the Plan of Reorganization is amended to extend the date of October 14,
2002 to a later date (but no later than November 14, 2002 except as provided in
the immediately following sentence), this Section 3 shall automatically (without
any action of the Parties or other signatories hereto) be amended so that
references to October 14, 2002 herein are replaced with reference to the date in
Section 4.2 of the Plan of Reorganization, as so amended; provided, however,
that no such amendment will be effective if, at the time of such amendment to
the Plan of Reorganization, the Investment Agreement, the Restructuring
Agreement or the TWC Settlement Agreement (as such terms are defined in the Plan
of Reorganization) shall have been terminated. In the event that all of the
conditions subsequent set forth in this Section 3 shall have been satisfied on
or before November 14, 2002, except that the Effective Date shall not have
occurred and none of the Investment Agreement, the Restructuring Agreement or
the TWC Settlement Agreement shall have been terminated, then this Amendment No.
1 shall not terminate if the Effective Date occurs on or before January 13,
2003; provided that this Amendment No. 1 shall be null and void, ab initio, and
the Parties shall be restored to their respective rights and obligations as in
existence immediately prior to the Stipulation Date (i) if the Effective Date
shall not have occurred by January 13, 2003 or (ii) upon termination of the
Investment Agreement, the Restructuring Agreement or the TWC Settlement
Agreement.

         4. Representations and Warranties. Each Party to this Amendment No. 1
represents and warrants to the other as follows:

         (a) The execution, delivery and performance by such party of this
         Amendment No. 1 and the performance by such party of the MAA as amended
         hereby (i) have been duly authorized by all necessary corporate or
         other action and (ii) do not and will not contravene its organizational
         documents or any applicable law. Such Party has all requisite corporate
         or limited liability company power and authority to enter into this
         Amendment No. 1 and to perform its obligations hereunder and under the
         MAA, as amended hereby.

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 12 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

         (b) This Amendment No. 1 and the MAA, as amended hereby, constitute the
         legal, valid and binding obligations of such party, enforceable against
         such party in accordance with their terms.

         5. Counterparts. This Amendment No. 1 may be executed in any number of
counterparts with the same effect as if all Parties hereto had signed the same
document. All counterparts shall be construed together and shall constitute one
instrument. Any such counterpart may be executed by facsimile transmission.

         6. Headings. Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
No. 1 for any other purpose.

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 13 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

         IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No.
1 to the MAA effective as of the date the last Party to this Amendment No. 1
signs below.

                                  WILLIAMS COMMUNICATIONS, LLC

                                  By :  /s/ Frank Semple
                                      ----------------------------------------
                                  Name:
                                  Title:

                                  --------------------------------------------
                                  (DATE)

                                  SBC COMMUNICATIONS INC.

                                  By :  /s/ Randall Stephenson
                                      ----------------------------------------
                                  Name:   Randall Stephenson
                                  Title:  Sr. EVP and CFO

                                                9/24/02
                                  --------------------------------------------
                                                     (DATE)

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                  Page 14 of 14

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

                                   SCHEDULE A

For purposes of Section 3.3.4 of the Master Alliance Agreement, the term
"physical diversity" means: (a) with respect to two or more separate, distinct
circuits whether protected or unprotected, that the physical paths of such
circuits be at least twenty-five feet (25') from one another, provided that the
two paths may get closer than this limit without violating these requirements of
physical diversity if the section of close proximity is within a physical
Point-of-Presence (POP) or building containing that POP and each circuit is
independently hardened via the use of rigid conduit outside of the POP walls,
and further provided that, if the two (or more) circuits traverse the same POP,
each circuit maps through fully separate and distinct transmission, switching,
and routing equipment, such that it offers no single point of failure in the
network; and (b) with respect to transmission, switching, and routing equipment,
that they are completely independent of one another with no shared common
hardware or software components with the data or control planes.
Notwithstanding, these requirements for physical diversity should not be
construed to require separate network management systems such as Naviscore.
Termination of the two circuits on the same LD voice switch will not violate
these physical diversity requirements if the circuits are provisioned to
separate SPMs or line shelves.

In addition to the foregoing, physical diversity between two or more separate
and distinct circuits shall require all of the following:

         o        Segregated right-of-ways or paths for conduit containing fiber
                  cabling as described above;

         o        Segregated POP entrance facilities for conduit/fiber;

         o        Segregated fiber cabling as described above;

         o        Segregated transmission, switching, or routing equipment with
                  no commonality of equipment components; and

         o        Fully protected power systems within a single POP.

This definition of physical diversity does not apply to wave services, wide area
gigabit ethernet services or any other services that do not, as of September 23,
2002, constitute Williams Supplied Services. In the event that the Parties
negotiate applicable characteristics and technical specifications for any such
services, then the Parties shall also negotiate in good faith either an
amendment to Schedule A or to Schedule B of the TSA setting forth the physical
diversity requirements for such product or service.

         This definition for "physical diversity" shall be independent of the
industry definition of "path diversity for a single protected transmission
system" which primarily

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                       i

<PAGE>

AMENDMENT NO. 1 TO MASTER ALLIANCE AGREEMENT

stipulates only non-collapsed, diverse fiber route requirements, which is
considered a subset of the physical diversity definition.

         This same definition shall apply to the local components of the service
as well. SBC will not require Williams to provide physical diversity across long
haul circuits if the local transport circuits are not as diverse as the long
haul circuits.

                             PROPRIETARY INFORMATION

         This information contained in this Amendment No. 1 is not for use or
disclosure outside SBC, Williams, their affiliated companies and their third
party representatives, except under written agreement by the contracting
Parties.

                                       ii

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