Document:

<PAGE>
                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                                U.S. $100,000,000

                                CREDIT AGREEMENT

                          dated as of November 22, 1999

                                      among

                                  DIVEO, INC.,
                                  as Borrower,

                            the LENDERS party hereto,

                                       and

                            LUCENT TECHNOLOGIES INC.,
                             as Administrative Agent
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                                TABLE OF CONTENTS

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ARTICLE I             DEFINITIONS AND ACCOUNTING TERMS                                                            1
         SECTION 1.01.  Certain Defined Terms                                                                     1
         SECTION 1.02.  Computation of Time Periods                                                              26
         SECTION 1.03.  Accounting Terms                                                                         26
ARTICLE II            AMOUNTS AND TERMS OF THE ADVANCES                                                          27
         SECTION 2.01.  The Advances                                                                             27
         SECTION 2.02.  Making the Advances                                                                      27
         SECTION 2.03.  Fees                                                                                     30
         SECTION 2.04.  Termination or Reduction of the Commitments                                              31
         SECTION 2.05.  Repayment of Advances                                                                    31
         SECTION 2.06.  Interest                                                                                 32
         SECTION 2.07.  Interest Rate Determination                                                              32
         SECTION 2.08.  Prepayments                                                                              32
         SECTION 2.09.  Increased Costs, Etc.                                                                    35
         SECTION 2.10.  Payments and Computations                                                                38
         SECTION 2.11.  Taxes                                                                                    39
         SECTION 2.12.  Sharing of Payments, Etc.                                                                41
         SECTION 2.13.  Use of Proceeds                                                                          42
         SECTION 2.14.  First Eurodollar Method and Second Eurodollar Method                                     42
         SECTION 2.15.  Redistribution of Payments                                                               43
ARTICLE III           CONDITIONS TO EFFECTIVENESS AND LENDING                                                    43
         SECTION 3.01.  Conditions Precedent to Effectiveness of Section 2.01                                    43
         SECTION 3.02.  Conditions Precedent to Each Borrowing                                                   48
ARTICLE IV            REPRESENTATIONS AND WARRANTIES                                                             49
         SECTION 4.01.  Representations and Warranties of the Borrower                                           49
ARTICLE V             COVENANTS OF THE BORROWER                                                                  57
         SECTION 5.01.  Affirmative Covenants                                                                    58
         SECTION 5.02.  Negative Covenants                                                                       62
         SECTION 5.03.  Reporting Requirements                                                                   72
         SECTION 5.04.  Operational and Financial Covenants                                                      77
ARTICLE VI            EVENTS OF DEFAULT                                                                          81
         SECTION 6.01.  Events of Default                                                                        81
ARTICLE VII           THE ADMINISTRATIVE AGENT                                                                   86
         SECTION 7.01.  Authorization and Action                                                                 86
         SECTION 7.02.  Agent's Reliance, Etc.                                                                   86
         SECTION 7.03.  Agent and Affiliates                                                                     87
         SECTION 7.04.  Lender Credit Decision                                                                   87
         SECTION 7.05.  Indemnification                                                                          87
         SECTION 7.06.  Successor Agent                                                                          88
ARTICLE VIII          MISCELLANEOUS                                                                              88
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<S>                                                                                                             <C>
         SECTION 8.01.  Amendments, Etc.                                                                         88
         SECTION 8.02.  Notices, Etc.                                                                            90
         SECTION 8.03.  No Waiver; Remedies                                                                      90
         SECTION 8.04.  Costs and Expenses; Indemnification                                                      90
         SECTION 8.05.  Right of Set-off                                                                         92
         SECTION 8.06.  Binding Effect                                                                           92
         SECTION 8.07.  Assignments and Participations                                                           93
         SECTION 8.08.  Confidentiality                                                                          95
         SECTION 8.09.  Governing Law                                                                            96
         SECTION 8.10.  Execution in Counterparts                                                                96
         SECTION 8.11.  Jurisdiction, Judgment Currency, Etc.                                                    96
         SECTION 8.12.  Waiver of Jury Trial                                                                     97
         SECTION 8.13.  Intercreditor Arrangements                                                               97
         SECTION 8.14. Intercreditor Agreement; Amendments to Ericsson Credit Agreement.                         97

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                                       iii
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Schedules

Schedule 3.01(a)(i)  Disclosed Litigation
Schedule 4.01(b)     Subsidiaries
Schedule 4.01(f)     Authorizations, Approvals, Notices and Filings
Schedule 4.01(o)     Liens
Schedule 4.01(t)     Leases of Real Property
Schedule 4.01(v)     Existing Debt
Schedule 4.01(w)     Investments
Schedule 4.01(x)     Material Contracts
Schedule 4.01(y)     Licenses
Schedule 4.01(z)     Insurance Policies
Schedule 4.01(dd)    Plans, Multiemployer Plans and Welfare Plans
Schedule 4.01(ii)    Material Licenses
Schedule 5.02(u)     Stock Purchase Agreements

Exhibits

Exhibit A     Form of Note
Exhibit B     Form of Notice of Borrowing
Exhibit C     Form of Assignment and Acceptance
Exhibit D-1   Form of Operating Subsidiary Guaranty
Exhibit D-2   Form of Intermediate Holding Company Subsidiary Guaranty
Exhibit E     Terms of Intercompany Mirror Subordinated Debt
Exhibit F     Form of Intercompany Mirror Subordinated Debt Subordination Agreement
Exhibit G     Form of Subordination Agreement
Exhibit H     Form of Blocked Account Letter Agreement
</TABLE>
<PAGE>

                                CREDIT AGREEMENT

     CREDIT AGREEMENT dated as of November 22, 1999 among DIVEO, INC., a
Delaware corporation (the "Borrower"), the Initial Lender, the Lenders (as
hereinafter defined) party hereto and LUCENT TECHNOLOGIES INC., as
administrative agent (the "Administrative Agent") for the Lenders (as
hereinafter defined).

                                    RECITALS

     The Borrower has been formed in order to plan, construct, operate and
maintain digital wireless local loop voice and data networks (each, a "Network")
in Mexico, Central America and South America (the "Territory") (the planning,
construction, operation and maintenance of the Networks being the "Project").

     The Borrower has entered into the Lucent Supply Agreement dated as of
November 22, 1999 with Lucent Technologies Inc. (together with any of its
Subsidiaries providing services pursuant to the Lucent Supply Agreement,
"Vendor") (the "Supply Agreement") pursuant to which Subsidiaries of the
Borrower will purchase from the Vendor or Subsidiaries of the Vendor, and the
Vendor or Subsidiaries of Vendor will sell to Subsidiaries of the Borrower,
certain telecommunications equipment, software, engineering and other services
in connection with the Project.

     Pursuant to this Agreement, the Borrower has requested that Lucent
Technologies Inc., as initial lender hereunder (the "Initial Lender"), extend
credit to it from time to time in order to finance certain costs of the Project,
including, among other things, purchases under the Supply Agreement. The Initial
Lender has agreed to extend credit to the Borrower from time to time under the
terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein, the parties hereto hereby agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
<PAGE>

          "Administrative Agent" has the meaning specified in the preamble to
     this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent at The Chase
     Manhattan Bank, New York, New York, ABA no. 021000021, account no.
     9101449099, phone no. (212) 552-2222 (or such other account in New York,
     New York as the Administrative Agent shall from time to time specify by
     notice).

          "Advance" means a Tranche A Advance or a Tranche B Advance.

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person. For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Stock of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Stock, by contract or otherwise.

          "Agent" means the Administrative Agent or the Collateral Agent.

          "Agreement Currency" has the meaning set forth in Section 8.11(c)(ii).

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in substantially the form of Exhibit C.

          "Back-to-Back Loans" means, with respect to any Advance, any of the
     following:

               (a) any loan made by the Borrower to an Intermediate Holding
          Company Subsidiary other than Comutacao Digital Ltda.;

               (b) any loan made by the Borrower to a financial institution;

               (c) any Investment made by the Borrower in a financial
          institution;

          provided that, in the case of (a), (b) or (c), such loan or
          Investment:

                    (i) was made from the proceeds of such Advance on
               substantially the economic terms of such Advance,

                    (ii) shall have been pledged by the Borrower to the
               Collateral Agent, and
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                                       3

                    (iii) the proceeds of which shall have been used by the
               recipient thereof to make a loan described in subsection (d)
               below; or

               (d) a loan made by the recipient of a Back-to-Back Loan described
          in subsection (a), (b) or (c) above with the proceeds of such
          Back-to-Back Loan or by the Borrower from the proceeds of Advances, in
          either case to an Operating Subsidiary:

                    (i) on substantially the economic terms of such related
               Back-to-Back Loan or Advance, as applicable,

                    (ii) that shall have been pledged by the lender (if the
               Borrower or an Intermediate Holding Company Subsidiary) to the
               Collateral Agent, and

                    (iii) the proceeds of which shall have been used by such an
               Operating Subsidiary for purposes specified in Section 2.13(a).

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the
     higher of:

               (a) the average of the rates of interest announced publicly by
          the Reference Banks in New York, New York, from time to time, as such
          banks' base rates, and

               (b) 1/2 of 1% per annum above the Federal Funds Rate.

          "Blocked Account" means an account of an Operating Subsidiary that is
     established for the purpose of transmitting proceeds of Advances that are
     to be applied to pay invoices under the Supply Agreement and is subject to
     a Blocked Account Letter Agreement or a written agreement with the
     financial institution with whom such proceeds are deposited acknowledging
     substantially similar limitations on the uses of such proceeds.

          "Blocked Account Letter Agreement" means an account agreement
     substantially in the form of Exhibit H attached hereto.

          "Borrower" has the meaning specified in the preamble to this
     Agreement.

          "Borrower Security Agreement" means, collectively, any security
     agreements of the Borrower in favor of the Collateral Agent and the Lenders
     entered into pursuant to Section 3.01(i)(viii), as amended, modified or
     supplemented from time to time.
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                                       4

          "Borrowing" means a borrowing consisting of Advances of the same
     tranche made on the same day by the Lenders.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close, with respect to any date of Borrowing, in
     New York City, U.S.A., and otherwise in New York City, U.S.A.; Sao Paulo,
     Brazil; Buenos Aires, Argentina; Santa Fe de Bogota, Colombia; Panama City,
     Panama; and Lima, Peru and days on which dealings are carried on in the
     London interbank market.

          "Capital Assets" means, with respect to any Person and at any date,
     all equipment, fixed assets and real property or improvements of such
     Person, or replacements or substitutions therefor or additions thereto,
     that have been or should be, in accordance with GAAP for such Person,
     reflected as additions to property, plant or equipment on the balance sheet
     of such Person at such date or that have a useful life of more than one
     year.

          "Capital Expenditures" means, for any period, all expenditures that
     have been or should be, in accordance with GAAP, reflected as capital
     expenditures to such period, less any indefeasible rights of use of fiber
     subject to Capitalized Leases.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Cash Equivalents" means:

               (a) as to the Borrower, any Intermediate Holding Company
          Subsidiary of the Borrower and any Operating Subsidiary of the
          Borrower subject to the jurisdiction of the United States or any state
          or district thereof, any of the following, to the extent owned by the
          Borrower or such Intermediate Holding Company Subsidiary free and
          clear of all Liens:

                    (i) readily marketable direct obligations of the Government
               of the United States or any agency or instrumentality thereof or
               obligations unconditionally guaranteed by the full faith and
               credit of the Government of the United States having a maturity
               of not greater than 720 days from the date of acquisition
               thereof;

                    (ii) insured certificates of deposit of or time deposits
               with any commercial bank having a maturity of not greater than
               720 days from the date of acquisition thereof that:
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                                       5

                         (A) is a Lender or a member of the Federal Reserve
                    System,

                         (B) issues (or the parent of which issues) commercial
                    paper rated as described in clause (iii),

                         (C) is organized under the laws of the United States or
                    any State thereof, and

                         (D) has combined capital and surplus of at least
                    $500,000,000;

                    (iii) commercial paper in any amount at any time having a
               maturity of not greater than 720 days from the date of
               acquisition thereof, issued by any corporation organized under
               the laws of any State of the United States and rated at least
               "Prime-1" (or the then equivalent grade) by Moody's Investors
               Service, Inc. or "A-1" (or the then equivalent grade) by Standard
               & Poor's Corporation; or

                    (iv) mutual funds issued by an entity organized in the
               United States whose investments are comprised of items described
               in clauses (i) to (iii) above and having a cash to assets ratio
               of 10% or more; and

               (b) as to any Operating Subsidiary subject to the jurisdiction of
          a government other than that of the United States of any state or
          district thereof, any of the following, to the extent owned by the
          relevant Subsidiary free and clear of all Liens and having a maturity
          of not greater than 360 days from the date of acquisition thereof:

                    (i) certificates of deposit or any other fixed-rate
               instrument issued by (A) major banks organized under the laws of
               such jurisdiction or (B) branches of international banks located
               in such jurisdiction, in each case having at the date of any
               investment combined capital and surplus and retained earnings of
               not less than U.S.$500,000,000 ("Permitted Banks");

                    (ii) money-market funds managed by a Permitted Bank;

                    (iii) foreign-currency-indexed financial instruments, such
               as Government bonds, issued by such jurisdiction, certificates of
               deposit or any other fixed-rate instrument issued by an
               investment fund, managed by a Permitted Bank; or
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                                       6

                    (iv) direct obligations of such jurisdiction, the central
               bank of the country of such jurisdiction or any agency or
               instrumentality the obligations of which have the full faith and
               credit of the government of such jurisdiction.

          "Change of Control" means the occurrence of any of the following:

               (a) any Competitor shall have acquired beneficial ownership
          (within the meaning of Rule 13d-3 of the Securities and Exchange
          Commission under the Securities Exchange Act of 1934), directly or
          indirectly, of Voting Stock of the Parent (or other securities
          convertible into such Voting Stock) representing 5% or more of the
          combined voting power of all Voting Stock of the Parent;

               (b) during any period of up to 24 consecutive months, commencing
          on or after June 25, 1999, designees who at the beginning of such
          24-month period were directors of the Borrower shall cease for any
          reason to constitute a majority of the board of directors of the
          Borrower;

               (c) any Competitor or two or more Competitors acting in concert
          shall have acquired by contract or otherwise, or shall have entered
          into a contract or arrangement that, upon consummation, will result in
          its or their acquisition of the power to exercise, directly or
          indirectly, a controlling influence over the management or policies of
          the Parent or control over Voting Stock of the Parent (or other
          securities convertible into such Voting Stock) representing 5% or more
          of the combined voting power of all Voting Stock of the Parent;

               (d) the Parent shall cease to own 100% of the Equity Interests in
          the Borrower; or

               (e) any Person or two or more Persons acting in concert shall
          have acquired, or shall have entered into a contract or arrangement
          that, upon consummation, will result in its or their acquisition of,
          beneficial ownership (within the meaning of Rule 13d-3 of the
          Securities and Exchange Commission under the Securities Exchange Act
          of 1934), directly or indirectly, of Voting Stock of the Parent (or
          other securities convertible into such Voting Stock) representing 50%
          or more of the combined voting power of all Voting Stock of the
          Parent.

          "Collateral" means all "Collateral" referred to in the Security
     Agreements and all other property that is subject to any Lien in favor of
     the Collateral Agent or the Lenders.
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                                       7

          "Collateral Agent" means Citibank, N.A. and its successors as
     collateral agent under the Intercreditor Agreement.

          "Collateral Agent Letter" means the letter agreement between the
     Collateral Agent and the Borrower referred to in Section 3.01(f).

          "Commitment" means a Tranche A Commitment or a Tranche B Commitment.

          "Competitor" means any Person that (a) has total annual revenues in
     excess of $1,000,000,000 and derives 10% or more of its gross revenues or
     profits or (b) has a division or Subsidiary has total annual revenues in
     excess of $100,000,000 and derives 10% or more of its gross revenues or
     profits, from the manufacture of telecommunications or data communications
     equipment or from another activity from which the Vendor or an Affiliate of
     the Vendor derives more than 10% of its gross revenues or profits, or an
     Affiliate of any such Person.

          "Compliance Certificate" has the meaning specified in Section 5.03(b).

          "Confidential Information" means information that the Borrower
     furnishes to the Administrative Agent or any Lender in a writing designated
     as confidential, but does not include any such information that is or
     becomes generally available to the public other than as a result of a
     violation of Section 8.08 or that is or becomes available to the
     Administrative Agent or such Lender from a source other than the Borrower.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Contributed Capital" means at any date, the aggregate amount of cash
     equity capital contributed to the Borrower by its shareholders prior to
     such date less any reductions in equity capital resulting from
     distributions made by the Borrower in excess of the Borrower's retained
     earnings.

          "Core Territories" means Argentina, Brazil, Colombia, Panama and Peru.

          "Current Assets" of any Person at any date means (a) all assets of
     such Person that would, in accordance with GAAP, at such date, be
     classified as current assets of a company conducting a business the same as
     or similar to that of such Person, after deducting adequate reserves in
     each case in which a reserve is proper in accordance with GAAP and (b)
     value added tax credits accrued within one year prior to such date.

          "Current Liabilities" of any Person means at any date:

               (a) all Debt of such Person that by its terms is payable on
          demand or matures within one year after such date (excluding any Debt
          renewable or
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                                       8

          extendable, at the option of such Person, to a date more than one year
          from such date or arising under a revolving credit or similar
          agreement that obligates the lender or lenders to extend credit during
          a period of more than one year from such date), and

               (b) all other liabilities of such Person that in accordance with
          GAAP would be classified as current liabilities of such Person.

          "Customer Premise Equipment" means any equipment that is (a) owned by
     an Operating Subsidiary, (b) located at the office or other premises owned
     by a customer or leased by a customer from a third party independent from
     the Borrower and its Affiliates, (c) sold, leased or transferred by such
     Operating Subsidiary to such customer, or to a third party lessor
     (independent from the Borrower and its Affiliates) of such equipment to
     such customer, in each case on which customer's premises such equipment is
     located and (d) of any of the following types: routers, firewalls,
     integrated access devices, radio systems, tdm multiplexors, atm
     multiplexors, PBX, server computers, LAN hubs, DSL multiplexors or protocol
     converters.

          "Debt" of any Person means, without duplication:

               (a) all indebtedness of such Person for borrowed money,

               (b) all Obligations of such Person for the deferred purchase
          price of property or services (other than trade payables not overdue
          by more than 60 days incurred in the ordinary course of such Person's
          business),

               (c) all Obligations of such Person evidenced by notes, bonds,
          debentures or other similar instruments,

               (d) all Obligations of such Person created or arising under any
          conditional sale or other title retention agreement with respect to
          property acquired by such Person (even though the rights and remedies
          of the seller or lender under such agreement in the event of default
          are limited to repossession or sale of such property),

               (e) all Obligations of such Person as lessee under Capitalized
          Leases,

               (f) all Obligations, contingent or otherwise, of such Person
          under acceptance, letter of credit or similar facilities,

               (g) all Obligations of such Person in respect of Hedge
          Agreements,
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                                       9

               (h) all Debt of others referred to in clauses (a) through (g)
          above or clause (i) below guaranteed directly or indirectly in any
          manner by such Person, or in effect guaranteed directly or indirectly
          by such Person through an agreement (A) to pay or purchase such Debt
          or to advance or supply funds for the payment or purchase of such
          Debt, (B) to purchase, sell or lease (as lessee or lessor) property,
          or to purchase or sell services, primarily for the purpose of enabling
          the debtor to make payment of such Debt or to assure the holder of
          such Debt against loss or (C) the primary purpose of which is to
          assure a creditor of such Person against loss, and

               (i) all Debt referred to in clauses (a) through (g) above secured
          by (or for which the holder of such Debt has an existing right,
          contingent or otherwise, to be secured by) any Lien on property
          (including without limitation accounts and contract rights) owned by
          such Person, even though such Person has not assumed or become liable
          for the payment of such Debt.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Disclosed Litigation" has the meaning specified in Section 3.01(a).

          "EBITDA" means for any period:

               (a) Net Income for such period (excluding, to the extent
          otherwise included in Net Income, Consolidated interest income), plus

               (b) the following, in each case without duplication and to the
          extent deducted from Revenue in accordance with GAAP in determining
          Net Income for such period:

                    (i) consolidated interest expense of the Borrower and its
               Subsidiaries for such period,

                    (ii) taxes based upon Net Income,

                    (iii) depreciation and amortization, and

                    (iv) other non-cash charges.

          "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender;
     (c) a commercial bank organized under the laws of the United States, or any
     State thereof, and having total assets in excess of $1,000,000,000; (d) a
     savings and loan association or savings bank organized under the laws of
     the United States, or any State thereof, and
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                                       10

     having total assets in excess of $1,000,000,000; (e) a commercial bank
     organized under the laws of any other country that is a member of the OECD
     or has concluded special lending arrangements with the International
     Monetary Fund associated with its General Arrangements to Borrow, or a
     political subdivision of any such country, and having total assets in
     excess of $1,000,000,000, so long as such bank is acting through a branch
     or agency located in the United States; (f) the central bank of any country
     that is a member of the OECD; and (g) a finance company, insurance company
     or other financial institution, or fund (whether a corporation,
     partnership, trust or other entity) that is engaged in making, purchasing
     or otherwise investing in commercial loans in the ordinary course of its
     business and having total assets (in the case of a fund, together with any
     other funds managed by the same fund manager) in excess of $1,000,000,000;
     provided that no Loan Party or Affiliate of a Loan Party shall qualify as
     an Eligible Assignee under this definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, Environmental
     Permit or Hazardous Materials or arising from alleged injury or threat of
     injury to health, safety or the environment, including without limitation
     (a) by any governmental or regulatory authority for enforcement, cleanup,
     removal, response, remedial or other actions or damages and (b) by any
     governmental or regulatory authority or any third party for damages,
     contribution, indemnification, cost recovery, compensation or injunctive
     relief.

          "Environmental Law" means any federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, judgment, decree or
     judicial or agency interpretation, policy or guidance relating to pollution
     or protection of the environment, health, safety or natural resources,
     including without limitation those relating to the use, handling,
     transportation, treatment, storage, disposal, release or discharge of
     Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock or contribution of (or other ownership or profit interests
     in) such Person, warrants, options or other rights for the purchase or
     other acquisition from such Person of shares of capital stock of (or other
     ownership or profit interests in) such Person, securities convertible into
     or exchangeable for shares of capital stock of (or other ownership or
     profit interests in) such Person or warrants, rights or options for the
     purchase or other acquisition from such Person of such shares (or such
     other interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member or trust interests
     therein),
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                                       11

     whether voting or nonvoting, and whether or not such shares, warrants,
     options, rights or other interests are authorized or otherwise existing on
     any date of determination.

          "Ericsson Credit Agreement" means the Amended and Restated Credit
     Agreement dated as of the date hereof among the Borrower, the Lenders party
     thereto and Ericsson Credit AB as Administrative Agent.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code.

          "ERISA Event" means (a) (i) the occurrence of a reportable event,
     within the meaning of Section 4043 of ERISA, with respect to any Plan
     unless the 30-day notice requirement with respect to such event has been
     waived by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
     apply with respect to a contributing sponsor, as defined in Section
     4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
     (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected
     to occur with respect to such Plan within the following 30 days; (b) the
     application for a minimum funding waiver with respect to a Plan; (c) the
     provision by the administrator of any Plan of a notice of intent to
     terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any
     such notice with respect to a plan amendment referred to in Section 4041(e)
     of ERISA); (d) the cessation of operations at a facility of any Loan Party
     or any ERISA Affiliate in the circumstances described in Section 4062(e) of
     ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a
     Multiple Employer Plan during a plan year for which it was a substantial
     employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for
     imposition of a lien under Section 302(f) of ERISA shall have been met with
     respect to any Plan; (g) the adoption of an amendment to a Plan requiring
     the provision of security to such Plan pursuant to Section 307 of ERISA; or
     (h) the institution by the PBGC of proceedings to terminate a Plan pursuant
     to Section 4042 of ERISA, or the occurrence of any event or condition
     described in Section 4042 of ERISA that constitutes grounds for the
     termination of, or the appointment of a trustee to administer, such Plan.

          "Eurocurrency Liabilities" has the meaning assigned to that term in
     Regulation D of the Board of Governors of the Federal Reserve System, as in
     effect from time to time.
<PAGE>

                                       12

          "Eurodollar Rate" means, for any Interest Period for each Advance
     comprising part of the same Borrowing, an interest rate per annum equal to
     the rate per annum obtained by dividing

               (a) LIBOR for such Interest Period by

               (b) a percentage equal to 100% minus the Eurodollar Rate Reserve
          Percentage for such Interest Period.

     The Eurodollar Rate for any Interest Period for each Advance comprising
     part of the same Borrowing shall be determined by the Administrative Agent,
     subject, however, to the provisions of Section 2.07.

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
     Advances comprising part of the same Borrowing means the reserve percentage
     applicable two Business Days before the first day of such Interest Period
     under regulations issued from time to time by the Board of Governors of the
     Federal Reserve System (or any successor) for determining the maximum
     reserve requirement (including without limitation any emergency,
     supplemental or other marginal reserve requirement) for a member bank of
     the Federal Reserve System in New York City with respect to liabilities or
     assets consisting of or including Eurocurrency Liabilities having a term
     equal to such Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.

          "Excess Cash Flow" means for any period the positive amount, if any,
     of:

               (a) EBITDA for such period, minus

               (b) the sum of the following, to the extent paid in cash by the
          Borrower and its Subsidiaries during such period:

                    (i) scheduled debt service,

                    (ii) taxes,

                    (iii) permitted Capital Expenditures (except for any capital
               expenditures that have been financed with Debt incurred during
               such period),

                    (iv) payments for spectrum rights other than payments in
               advance of the date due, and
<PAGE>

                                       13

                    (v) extraordinary cash charges,

               (c) plus any decrease or minus any increase, as the case may be,
          in Working Capital Investments between the first and last day of such
          period.

          "Existing Debt" means Debt of the Borrower and its Subsidiaries
     outstanding as of June 25, 1999.

          "Extraordinary Receipt" means any cash received by or paid to or for
     the account of any Person not in the ordinary course of business,
     including, without limitation, tax refunds, pension plan reversions,
     proceeds of insurance (other than proceeds of business interruption
     insurance to the extent such proceeds constitute compensation for lost
     earnings), condemnation awards (and payments in lieu thereof) and indemnity
     payments.

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal-funds transactions with members
     of the Federal Reserve System arranged by Federal-funds brokers, as
     published for such day (or, if such day is not a Business Day, for the
     next-preceding Business Day) by the Federal Reserve Bank of New York, or,
     if such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day on such transactions received by the
     Administrative Agent from three Federal-funds brokers of recognized
     standing selected by it.

          "Federal Reserve System" means the system established by the Federal
     Reserve Act of 1913 to regulate the U.S. monetary and banking system.

          "First Eurodollar Method" means the terms and provisions of this
     Agreement applicable to Advances when the First Eurodollar Method is to be
     applied pursuant to Section 2.14.

          "GAAP" has the meaning specified in Section 1.03.

          "Governmental Authority" means any nation or government, any state or
     other political subdivision thereof and any entity exercising executive,
     legislative, judicial, regulatory or administrative functions of or
     pertaining to government.

          "Gross PP&E" means at any date, Consolidated gross plant, property and
     equipment of the Borrower and its Subsidiaries less any indefeasible rights
     of use of fiber subject to Capitalized Leases, in each case as of such date
     and as determined in accordance with GAAP.
<PAGE>

                                       14

          "Guarantor" means any Subsidiary of the Borrower that executes a
     Guaranty.

          "Guaranty" means a guaranty issued in favor of the Administrative
     Agent and the Lenders (i) in the case of any Operating Subsidiary, in
     substantially in the form of Exhibit D-1 or (ii) in the case of any
     Intermediate Holding Company, in substantially the form of Exhibit D-2.

          "Hazardous Materials" means:

               (a) petroleum and petroleum products, byproducts or breakdown
          products, radioactive materials, asbestos-containing materials,
          polychlorinated biphenyls and radon gas, and

               (b) any other chemicals, materials or substances designated,
          classified or regulated as hazardous or toxic or as a pollutant or
          contaminant under any Environmental Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other similar agreements.

          "Indemnified Costs" has the meaning specified in Section 7.05.

          "Initial Lender" has the meaning specified in the preamble to this
     Agreement.

          "Insignificant Subsidiary" means any Subsidiary of the Borrower having
     assets with a value not exceeding $500,000 or in which no more than
     $500,000 has been invested.

          "Intercompany Mirror Subordinated Debt" means unsecured Debt owing by
     the Borrower to the Parent that:

               (a) is loaned to the Borrower by the Parent and designated by the
          Borrower as representing proceeds from the incurrence of Debt (the
          "Parent Mirror Debt") issued by the Parent;

               (b) has an interest rate not exceeding the lesser of (i) the
          interest rate applicable to the related Parent Mirror Debt and (ii) a
          rate of 20% per annum;

               (c) does not provide for any payment of principal prior to the
          final scheduled maturity date for the last repayment of Advances of
          either Tranche; and
<PAGE>

                                       15

               (d) has defaults, covenants and other provisions that comply with
          Exhibit E and subordination terms substantially in the form of Exhibit
          F.

          "Intercreditor Agreement" means the amended and restated Intercreditor
     Agreement entered into pursuant to Section 3.01(e) among the Collateral
     Agent, the Administrative Agent, the Initial Lender, Ericsson Credit AB as
     administrative agent and as initial lender pursuant to the Ericsson Credit
     Agreement and the other administrative agents and lenders from time to time
     party thereto, as amended, amended and restated, supplemented or otherwise
     modified from time to time.

          "Interest Period" means:

               (a) when the First Eurodollar Method is applicable, for each
          Advance comprising part of the same Borrowing, the period commencing
          on the date of the initial Advance and ending six months thereafter
          and, thereafter, each subsequent six-month period commencing on the
          last day of the immediately preceding Interest Period and ending on
          the last day of such period; and

               (b) when the Second Eurodollar Method is applicable, for each
          Advance comprising part of the same Borrowing, the period commencing
          on the date of such Advance and ending six months thereafter and,
          thereafter, each subsequent six-month period commencing on the last
          day of the immediately preceding Interest Period and ending on the
          last day of such period;

          provided, in each case, that:

               (a) in the event the last day of the Interest Period immediately
          preceding the Tranche A Termination Date would occur on a day other
          than the Tranche A Termination Date, the last day of such Interest
          Period shall be shortened to occur on the Tranche A Termination Date;

               (b) whenever the last day of any Interest Period would otherwise
          occur on a day other than a Business Day, the last day of such
          Interest Period shall be extended to occur on the next-succeeding
          Business Day; provided that, if such extension would cause the last
          day of such Interest Period to occur in the next-following calendar
          month, the last day of such Interest Period shall occur on the
          next-preceding Business Day; and

               (c) whenever the last day of any Interest Period occurs on a day
          of an initial calendar month for which there is no numerically
          corresponding day in the sixth calendar month thereafter, such
          Interest Period shall end on the last Business Day of such sixth
          calendar month.
<PAGE>

                                       16

          "Intermediate Holding Company Security Agreement" means a security
     agreement of an Intermediate Holding Company Subsidiary in favor of the
     Collateral Agent and the Lenders entered into pursuant to Section
     5.01(k)(ii), as amended, modified or supplemented from time to time.

          "Intermediate Holding Company Subsidiary" means any Subsidiary of the
     Borrower that:

               (a) has no assets other than (i) capital stock of an Operating
          Subsidiary or Intermediate Holding Company Subsidiary, and (ii)
          Investments permitted under Section 5.02(k)(iii)(B) and (iii)
          intercompany loans made to such Subsidiaries that are permitted under
          Section 5.02(k)(vii);

               (b) has no Debt or other liabilities other than intercompany
          loans permitted under Section 5.02(a)(v); and

               (c) is primarily engaged in the business of holding the capital
          stock of or Investments in an Operating Subsidiary or Intermediate
          Holding Company Subsidiary.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any capital stock, warrants, rights,
     options, obligations or other securities of such Person, any capital
     contribution to such Person or any other investment in such Person,
     including without limitation any arrangement pursuant to which the investor
     incurs Debt of the types referred to in clauses (a) and (i) of the
     definition of "Debt" in respect of such Person.

          "Judgment Currency" has the meaning set forth in Section 8.11(c)(ii).

          "Lender Party" means any Lender or the Administrative Agent.

          "Lenders" means the Initial Lender and each Person that shall become a
     Lender hereunder pursuant to Section 8.07.

          "Lenders' Pro Rata Portion" means, at any time and with respect to any
     amount, the Lenders' pro rata portion of such amount, calculated in
     proportion with the outstanding principal amounts owing at such time by the
     Borrower under the Permitted Loan Agreements (as defined in the
     Intercreditor Agreement).
<PAGE>

                                       17

          "Lending Office" means, with respect to any Lender, the office of such
     Lender specified as its "Lending Office" opposite its name on the signature
     page hereto or in the Assignment and Acceptance pursuant to which it became
     a Lender, or such other office of such Lender as such Lender may from time
     to time specify to the Borrower and the Administrative Agent.

          "LIBOR" means, with respect to any Interest Period, an interest rate
     per annum equal to the rate per annum obtained by the arithmetic mean
     (rounded upwards to the nearest 1/16th of 1%) of the offered rates for
     deposits in United States Dollars in approximately the same amount as such
     Advance and having a tenor equal to the duration of such Interest Period,
     commencing on the first day of such Interest Period, as such rates appear
     on the "Reuters Screen LIBO Page" at approximately 11:00 A.M. (London time)
     on the second Business Day preceding the first day of such Interest Period,
     if at least two such offered rates appear on the Reuters Screen LIBO Page.
     If fewer than two offered rates appear on the Reuters Screen LIBO Page on
     such interest determination date, the Administrative Agent will request the
     principal London offices of each of the Reference Banks to provide the
     Administrative Agent with its offered quotations for deposits in United
     States Dollars in approximately the same amount as such Advance and having
     a tenor equal to the duration of such Interest Period, commencing on the
     first day of such Interest Period, to prime banks in the London interbank
     market at approximately 11:00 A.M. (London time) on such interest
     determination date. If at least two such quotations are provided, LIBOR
     shall be the arithmetic mean (rounded upwards to the nearest 1/16th of 1%)
     of such quotations. If one such quotation is provided, LIBOR shall be the
     rate mentioned in such quotation. If no such quotations are provided, LIBOR
     shall be indeterminable.

          "Licenses" means, at any time, any license or spectrum right listed at
     such time on Schedule 4.01(y) hereof, as amended pursuant to Section
     5.03(u), and all other licenses and spectrum rights (other than licenses
     relating to general business activities and the ownership and use of
     property applicable to persons generally and not specifically required to
     engage in business of the type proposed to be conducted by the Borrower and
     its Subsidiaries) held by the Borrower and its Subsidiaries providing for
     the right to operate the Networks in the Territory.

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including without limitation the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.
<PAGE>

                                       18

          "Loan Documents" means this Agreement, the Notes issued hereunder, the
     Security Agreements, the Intercreditor Agreement, any Guaranty, the
     Collateral Agent Letter and the Blocked Account Letter Agreements.

          "Loan Parties" means the Borrower and any Guarantor.

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, condition (financial or otherwise), operations, or performance of
     the Borrower and its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on

               (a) the business, condition (financial or otherwise), operations,
          performance, properties or prospects of the Borrower and its
          Subsidiaries taken as a whole,

               (b) the ability of the Borrower to perform its payment
          Obligations under the Loan Documents, or

               (c) the validity or enforceability of any Lien in favor of the
          Agents or the Lenders or the validity or enforceability of any Loan
          Document.

          "Material Assets" means, with respect to any Person, an asset or
     assets having either individually or in the aggregate a fair market value
     of $2,000,000 or more.

          "Material Contract" means, with respect to the Borrower and each of
     its Subsidiaries, each contract to which the Borrower or such Subsidiary,
     as the case may be, is a party involving aggregate consideration payable to
     or by the Borrower or such Subsidiary, as the case may be, of $5,000,000 or
     more in any calendar year.

          "Material License" means, at any time, any License listed at such on
     Schedule 4.01(ii) hereof, as amended pursuant to Section 5.03(u), and all
     other Licenses held by the Borrower and its Subsidiaries with respect to
     the ownership and operation of digital wireless local loop data networks
     constituting a portion of a Network in each of the Core Territories as well
     as any other part of the Territory that are necessary for the Borrower to
     fulfill the financial and operational projections set forth in the
     Borrower's business plan dated October 29, 1999, including all Licenses
     with respect to rights to use spectrum in the 15 GHz, 18 GHz, 23 GHz and 38
     GHz bands.

          "Moody's" means Moody's Investors Service, Inc.
<PAGE>

                                       19

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Multiple Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and at least one Person other than the
     Loan Parties and the ERISA Affiliates or (b) was so maintained and in
     respect of which any Loan Party or any ERISA Affiliate could have liability
     under Section 4064 or 4069 of ERISA in the event such plan has been or were
     to be terminated.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the sale or issuance of any Debt or
     capital stock or other ownership or profit interest, any securities
     convertible into or exchangeable for capital stock or other ownership or
     profit interest or any warrants, rights, options or other securities to
     acquire capital stock or other ownership or profit interest by any Person,
     or any Extraordinary Receipt received by or paid to or for the account of
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication):

               (a) reasonable and customary brokerage commissions, underwriting
          fees and discounts, legal fees, finder's fees and other similar fees
          and commissions and

               (b) the amount of taxes payable in connection with or as a result
          of such transaction,

     in each case to the extent, but only to the extent, that the amounts so
     deducted are, at the time of receipt of such cash, actually paid to a
     Person that is not an Affiliate of such Person or any Loan Party or any
     Affiliate of any Loan Party and are properly attributable to such
     transaction or to the asset that is the subject thereof.

          "Net Income" means for any period the Consolidated net income or net
     loss, as the case may be, of Borrower and its Subsidiaries, excluding
     extraordinary gains and losses, in each case for such period and as
     determined in accordance with GAAP.

          "Network" has the meaning specified in the recitals to this Agreement.
<PAGE>

                                       20

          "Note" means a promissory note of the Borrower payable to the order of
     any Lender, in substantially the form of Exhibit A, evidencing the
     aggregate Debt of the Borrower to such Lender resulting from the Advances
     made by such Lender.

          "Notice of Borrowing" has the meaning specified in Section 2.02.

          "Obligation" means, with respect to any Person, any payment,
     performance or other obligation of such Person of any kind, including,
     without limitation, any liability of such Person on any claim, whether or
     not the right of any creditor to payment in respect of such claim is
     reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
     disputed, undisputed, legal, equitable, secured or unsecured, and whether
     or not such claim is discharged, stayed or otherwise affected by any
     proceeding referred to in Section 6.01(g). Without limiting the generality
     of the foregoing, the Obligations of the Loan Parties under the Loan
     Documents include (a) the obligation to pay principal, interest, charges,
     expenses, fees, attorneys' fees and disbursements, indemnities and other
     amounts payable by any Loan Party under any Loan Document and (b) the
     obligation of any Loan Party to reimburse any amount in respect of any of
     the foregoing that any Lender Party, in its sole discretion, may elect to
     pay or advance on behalf of such Loan Party.

          "Operating Subsidiary" means any Subsidiary of the Borrower engaged in
     the business of operating one or more Networks.

          "Operating Subsidiary Security Agreement" means a security agreement
     of an Operating Subsidiary in favor of the Collateral Agent and the Lenders
     entered into pursuant to Section 5.01(k)(ii), as amended, modified or
     supplemented from time to time.

          "Other Secured Creditors" means Secured Creditors other than the
     Lenders.

          "Parent" means Diginet Americas, Inc.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced:

               (a) Liens for taxes, assessments and governmental charges or
          levies to the extent not required to be paid under Section 5.01(b)
          hereof;

               (b) Liens imposed by law, such as materialmen's, mechanics',
          carriers', workmen's and repairmen's Liens and other similar Liens
          arising in the ordinary
<PAGE>

                                       21

          course of business securing obligations that are not overdue for a
          period of more than 30 days;

               (c) pledges or deposits to secure obligations under workers'
          compensation laws or similar legislation or to secure public or
          statutory obligations; and

               (d) easements, rights of way and other encumbrances on title to
          real property that do not render title to the property encumbered
          thereby unmarketable or materially adversely affect the use of such
          property for its present purposes.

          "Person" means an individual, partnership, corporation (including a
     business trust), joint stock company, trust, unincorporated association,
     joint venture, limited liability company or other entity, or a government
     or any political subdivision or agency thereof.

          "Plan" means a Single Employer Plan or a Multiple Employer Plan.

          "Project" has the meaning specified in the recitals of this Agreement.

          "Reference Banks" means Citibank plc, Barclays Bank and The Chase
     Manhattan Bank.

          "Register" has the meaning specified in Section 8.07(c).

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Regulatory Permits" means all permits needed to construct, install,
     commission, service, maintain and operate the Networks in each Core
     Territory.

          "Required Lenders" means at any time Lenders holding at least a
     majority in interest of the sum of the then-outstanding aggregate unpaid
     principal amount of the Advances owing to Lenders and then-outstanding
     undrawn Commitments (including any Commitments not then available to be
     drawn).

          "Restricted Payment" means any distribution of the Borrower or any of
     its Subsidiaries (in cash, property or obligations) on, or other payments
     on account of, or the setting apart of money for a sinking or other
     analogous fund for, or the purchase, redemption, retirement, prepayment or
     other acquisition of
<PAGE>

                                       22

               (a) any portion of any membership or other equity interest in the
          Borrower or of any warrants, options or other rights to acquire any
          such membership or equity interest (or to make any payments to any
          Person where the amount thereof is calculated with reference to fair
          market or equity value of the Borrower or any of its Subsidiaries), or

               (b) any Intercompany Mirror Subordinated Debt or Subordinated
          Debt.

          "Revenue" means, for any period, Consolidated revenue of the Borrower
     and its Subsidiaries for such period as determined in accordance with GAAP.

          "S&P" means Standard & Poor's, a division of The McGraw-Hill
     Companies, Inc.

          "Second Eurodollar Method" means the terms and provisions of this
     Agreement applicable to Advances when the Second Eurodollar Method is to be
     applied pursuant to Section 2.14.

          "Secured Creditors" means creditors of the Borrower or its
     Subsidiaries holding Debt of the Borrower secured by Shared Liens.

          "Security Agreement" means the Borrower Security Agreement, any
     Intermediate Holding Company Security Agreement, any Operating Subsidiary
     Security Agreement or other security agreement entered into pursuant to
     this Agreement in favor of the Collateral Agent and the Lenders, as
     amended, amended and restated, modified or supplemented from time to time,
     and any other agreement that creates or purports to create a Lien in favor
     of the Collateral Agent for the benefit of the Lenders or in favor of the
     Lenders.

          "Securities Act" has the meaning set forth in Section 2.08(b)(iv).

          "Shared Liens" means Liens securing Debt permitted pursuant to Section
     5.02(a)(vii) and (viii).

          "Single Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and no Person other than the Loan Parties
     and the ERISA Affiliates or (b) was so maintained and in respect of which
     any Loan Party or any ERISA Affiliate could have liability under Section
     4069 of ERISA in the event such plan has been or were to be terminated.
<PAGE>

                                       23

          "Solvent" means, with respect to any Person on a particular date, that
     on such date:

               (a) the fair value of the property of such Person is greater than
          the total amount of liabilities, including without limitation
          contingent liabilities, of such Person,

               (b) such Person does not intend to, and does not believe that it
          will, incur debts or liabilities beyond such Person's ability to pay
          as such debts and liabilities mature, and

               (c) such Person is not engaged in business or a transaction, and
          is not about to engage in business or a transaction, for which such
          Person's property would constitute an unreasonably small capital.

          "Subordinated Debt" means any Debt of the Borrower owed to the Parent
     that is subordinated to the Advances pursuant to a Subordination Agreement.

          "Subordination Agreement" means a subordination agreement
     substantially in the form of Exhibit G.

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of:

               (a) the issued and outstanding capital stock having ordinary
          voting power to elect a majority of the Board of Directors of such
          corporation (irrespective of whether at the time capital stock of any
          other class or classes of such corporation shall or might have voting
          power upon the occurrence of any contingency),

               (b) the interest in the capital or profits of such limited
          liability company, partnership or joint venture, or

               (c) the beneficial interest in such trust or estate,

     is at the time directly or indirectly owned or controlled by such Person,
     by such Person and one or more of its other Subsidiaries or by one or more
     of such Person's other Subsidiaries.

          "Supermajority Lenders" means at any time Lenders owed at least a
     66 2/3% in interest of the sum of the then-outstanding aggregate unpaid
     principal amount of the
<PAGE>

                                       24

     Advances owing to Lenders and then-outstanding undrawn Commitments
     (including any Commitments not then available to be drawn).

          "Supply Agreement" has the meaning specified in the recitals to this
     Agreement.

          "Territory" has the meaning specified in the recitals to this
     Agreement.

          "Total Cash Debt Service" means for any period scheduled total cash
     payments by the Borrower and its Subsidiaries during such period in respect
     of interest (plus any indemnities payable in respect of withholding taxes
     or stamp duties in respect of such interest payments) and principal in
     respect of Debt of the Borrower and its Subsidiaries.

          "Total Debt" means, at any date, the aggregate principal amount of
     Debt of the Borrower and its Subsidiaries then outstanding.

          "Tranche A Advance" has the meaning specified in Section 2.01(a).

          "Tranche A Commitment" means, with respect to any Lender at any time,
     the amount set forth opposite such Lender's name on the signature pages
     hereof or, if such Lender has entered into one or more Assignment and
     Acceptances, set forth in the Register maintained by the Administrative
     Agent pursuant to Section 8.07(c) as such Lender's "Tranche A Commitment",
     as such amount may be reduced from time to time pursuant to Section 2.04.

          "Tranche A Effective Date" has the meaning specified in Section
     3.01(a).

          "Tranche A Facility Fee" has the meaning specified in Section 2.03(c).

          "Tranche A Termination Date" means the earlier of the second
     anniversary of the Tranche A Effective Date and the date of termination in
     whole of the Tranche A Commitments pursuant to Section 2.04 or 6.01.

          "Tranche B Advance" has the meaning specified in Section 2.01(b).

          "Tranche B Commitment" means, with respect to any Lender at any time:

               (a) the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment" plus
<PAGE>

                                       25

               (b) the undrawn amount of such Lender's Tranche A Commitment on
          the Tranche A Termination Date,

               as such amount may be reduced from time to time pursuant to
               Section 2.04.

          "Tranche B Effective Date" means, with respect to the Tranche B
     Commitments of the Lenders, the earlier of (a) the second anniversary of
     the Tranche A Effective Date and (b) the first date, after all Tranche A
     Commitments shall have been drawn, on which the Borrower shall have
     complied with the covenants set forth in Section 5.04 applicable on such
     second anniversary of the Tranche A Effective Date.

          "Tranche B Facility Fee" has the meaning specified in Section 2.03(d).

          "Tranche B Termination Date" means the earliest of (i) the eighteen
     month anniversary of the Tranche B Effective Date, (ii) the forty-two month
     anniversary of the Tranche A Effective Date and (iii) the date of
     termination in whole of the Tranche B Commitments pursuant to Section 2.04
     or 6.01.

          "Tributary" has the meaning set forth in Section 5.02(v).

          "Vendor" has the meaning specified in the recitals to this Agreement.

          "Voice Grade Equivalents" means, at any time, the sum of kilobits per
     second in service for each customer at such time, divided by 64 kilobits
     per second.

          "Voting Stock" means capital stock issued by a corporation, or
     equivalent interests in any other Person, the holders of which are
     ordinarily, in the absence of contingencies, entitled to vote for the
     election of directors (or persons performing similar functions) of such
     Person, even if the right so to vote has been suspended by the happening of
     such a contingency.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Wholly Owned Subsidiary" of any Person means any corporation,
     partnership, joint venture, limited liability company, trust or estate of
     which (or in which) 100% of (a) the issued and outstanding capital stock
     having ordinary voting power to elect a majority of the Board of Directors
     of such corporation (irrespective of whether at the time capital stock of
     any other class or classes of such corporation shall or might have voting
     power upon the occurrence of any contingency), (b) the interest in the
     capital or profits of such partnership, joint venture or limited liability
     company or (c) the beneficial interest in
<PAGE>

                                       26

     such trust or estate is at the time directly or indirectly owned or
     controlled by such Person, by such Person and one or more of its other
     Subsidiaries or by one or more of such Person's other Subsidiaries;
     provided that, if applicable law prohibits the exercise of such percentage
     of direct or indirect ownership or control, the ownership or control held
     by such Person and one or more of its other Subsidiaries shall be the
     maximum percentage permitted under such applicable law.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          "Working Capital Investments" means, as at any date, the difference
     (positive or negative) between the amount of current assets (excluding cash
     and Cash Equivalents) of the Borrower as of such date minus the amount of
     current liabilities (excluding current liabilities in respect of Debt) of
     the Borrower as of such date, in each case determined on a consolidated
     basis in accordance with GAAP.

     SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".

     SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with United States generally
accepted accounting principles consistent with those consistently applied in the
preparation of the financial statements ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

     SECTION 2.01. The Advances. (a) The Tranche A Advances. Each Lender having
a Tranche A Commitment severally agrees, on the terms and conditions hereinafter
set forth, to make Advances (each, a "Tranche A Advance") to the Borrower from
time to time on any Business Day during the period from the Tranche A Effective
Date until the Tranche A Termination Date in an aggregate amount not to exceed
at any time outstanding such Lender's Tranche A Commitment. Each Borrowing
consisting of Tranche A Advances shall be in an amount not exceeding (i) amounts
owing under invoices issued or accepted by the Vendor pursuant to the Supply
Agreement during the calendar month immediately preceding the date of the
proposed Borrowing and that were not paid with the proceeds of any prior
Borrowing and (ii) interest owing on Borrowings to be paid with the proceeds
thereof. Each such Borrowing shall consist of Advances made on the same day by
the Lenders ratably according to their respective Tranche A Commitments. Amounts
borrowed hereunder and repaid or prepaid may not be reborrowed.
<PAGE>

                                       27

     (b) The Tranche B Advances. Each Lender having a Tranche B Commitment
severally agrees, on the terms and conditions hereinafter set forth, to make
Advances (each, a "Tranche B Advance") to the Borrower from time to time on any
Business Day during the period from the Tranche B Effective Date until the
Tranche B Termination Date in an aggregate amount not to exceed at any time
outstanding such Lender's Tranche B Commitment. Each Borrowing consisting of
Tranche B Advances shall be in an amount not exceeding (i) amounts owing under
invoices issued or accepted by the Vendor pursuant to the Supply Agreement
during the calendar month immediately preceding the date of the proposed
Borrowing and that were not paid with the proceeds of any prior Borrowing and
(ii) interest owing on Borrowings to be paid with the proceeds thereof. Each
such Borrowing shall consist of Advances made on the same day by the Lenders
ratably according to their respective Tranche B Commitments. Amounts borrowed
hereunder and repaid or prepaid may not be reborrowed.

     SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made on
notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Borrowing by the Borrower to the
Administrative Agent; provided that, except with respect to Borrowings the
proceeds of which shall be used to pay interest owing on Borrowings as permitted
hereunder:

          (i) the Borrower may not give more than one such notice in any
     calendar month; and

          (ii) for any Borrowing proposed to be made after December 31, 1999,
     the date of each Borrowing shall be the twentieth day of each calendar
     month; provided that if such date is not a Business Day, the date of
     Borrowing shall be the next Business Day.

The Administrative Agent shall give to each Lender prompt notice thereof by
telecopier or telex. Each such notice of a Borrowing (a "Notice of Borrowing")
shall be in writing, in substantially the form of Exhibit B, specifying therein:

          (A) the requested date of such Borrowing,

          (B) the requested aggregate amount of such Borrowing,

          (C) the Vendor's invoices to be paid with the proceeds of such
     Borrowing, the respective amounts of such invoices to be paid and the
     aggregate amount of such invoices to be paid, and

          (D) any payments of interest owing on Borrowings to be paid with the
     proceeds of such Borrowing as permitted hereunder.
<PAGE>

                                       28

Each Lender having an applicable Commitment to fund an Advance shall, before
11:00 A.M. (New York City time) on the date of such Borrowing, make available
for the account of its Lending Office to the Administrative Agent at the
Administrative Agent's Account, in same day funds, such Lender's ratable portion
of such Borrowing; provided that if a Commitment is assigned by the Initial
Lender after receipt of a Notice of Borrowing but prior to the Borrowing related
thereto (any such assigned Commitment, a "Fronting Commitment"), and the
Assignment and Acceptance relating thereto specifies such assigned Commitment is
a Fronting Commitment, the Initial Lender's ratable portion of such Borrowing
shall equal (w) the amount the Initial Lender would have funded in respect of
such Borrowing calculated without giving effect to such assignment minus (x) the
amount of such Fronting Commitment, and the assignee's ratable portion of such
Borrowing shall equal (y) the amount such assignee would have funded in respect
of such Borrowing calculated without giving effect to any assignment under which
such assignee was assigned a Fronting Commitment plus (z) the amount of such
Fronting Commitment. After the Administrative Agent's receipt of such funds and
upon fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the Borrower. The
Borrower irrevocably directs the Administrative Agent to make available to the
Borrower the portion of any Borrowing to be used to pay amounts owing to the
Vendor, as specified in the related Notice of Borrowing to such account as
notified to the Administrative Agent in the related Notice of Borrowing and to
pay the portion to of any Borrowing to be used to pay interest owing to the
Lenders to the extent permitted hereunder, as specified in the related Notice of
Borrowing, to the Lenders entitled thereto; provided that, if such account is
not with the Administrative Agent such Borrowing shall be deemed to have been
made when the Administrative Agent shall have initiated the transfer of funds
comprising such Borrowing to such account.

     (b) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. The Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including (without limitation)
any loss, cost or expense incurred by reason of the liquidation or reemployment
of deposits or other funds acquired by such Lender to fund the Advance to be
made by such Lender as part of such Borrowing when such Advance, as a result of
such failure, is not made on such date. The loss to any Lender attributable to
any such failure shall be deemed to be an amount determined by such Lender to be
equal to the excess, if any, of (i) the amount of interest that such Lender
would pay for a deposit equal to the principal amount of the applicable
Eurodollar Rate Advance not borrowed for the duration of the Interest Period
that would have resulted from such borrowing if the interest rate payable on
such deposit were equal to the Eurodollar Rate for such Interest period, over
(ii) the amount of interest that such Lender would earn on such principal amount
for such period if such Lender were to invest such principal amount for such
period at the interest rate that would be bid by such Lender (or an Affiliate of
such Lender) for dollar deposits from other banks in the eurodollar market at
the commencement
<PAGE>

                                       29

of such period. A certificate as to the amount of such loss, cost or expense,
submitted to the Borrower by such Lender, shall be conclusive and binding for
all purposes, absent manifest error.

     (c) Unless the Administrative Agent shall have received notice from a
Lender that has an applicable Commitment prior to the date of any Borrowing that
such Lender will not make available to the Administrative Agent such Lender's
ratable portion of such Borrowing, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the date
of such Borrowing in accordance with subsection (a) of this Section 2.02 and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If and to the extent that such
Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay to
the Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made available
to the Borrower until the date such amount is repaid to the Administrative
Agent, at (i) in the case of the Borrower, the interest rate applicable at the
time to Advances comprising such Borrowing and (ii) in the case of such Lender,
the Federal Funds Rate. If such Lender shall repay to the Administrative Agent
such corresponding amount, such amount so repaid shall constitute such Lender's
Advance as part of such Borrowing for purposes of this Agreement.

     (d) The failure of any Lender obligated to make an Advance to make such
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make any Advance to be made by such other Lender on the date of any
Borrowing.

     SECTION 2.03. Fees. (a) Tranche A Commitment Fee. The Borrower shall pay to
the Administrative Agent for the account of each Lender having a Tranche A
Commitment a commitment fee on the average daily unused portion of each Lender's
Tranche A Commitment from the Tranche A Effective Date in the case of the
Initial Lender and from the effective date specified in the Assignment and
Acceptance pursuant to which it became a Lender in the case of each other such
Lender, until the Tranche A Termination Date at the rate of 1.10 % per annum,
payable in cash on the last day of each Interest Period or, in the event no
Advance is then outstanding, in arrears semi-annually on the last Business Day
of each of June and December, commencing on December 31, 1999, and on the
Tranche A Termination Date.

     (b) Tranche B Commitment Fee. The Borrower shall pay to the Administrative
Agent for the account of each Lender having a Tranche B Commitment a commitment
fee on the average daily unused portion of such Lender's Tranche B Commitment,
from the Tranche B Effective Date, in the case of each Person that is such a
Lender on such date, and from the effective date specified in the Assignment and
Acceptance pursuant to which it became a Lender in the case of each other such
Lender, until the Tranche B Termination Date at
<PAGE>

                                       30

the rate of 1.10% per annum, payable in cash on the last day of each Interest
Period or, in the event no Advance is then outstanding, in arrears semi-annually
on the last Business Day of each of June and December, commencing on June 30,
2001, and on the Tranche B Termination Date.

     (c) Tranche A Facility Fee. The Borrower shall pay to the Administrative
Agent for distribution to the Initial Lender, in cash, on the Tranche A
Effective Date, a one-time facility fee (the "Tranche A Facility Fee") of 1.10%
of the Initial Lender's Tranche A Commitment.

     (d) Tranche B Facility Fee. The Borrower shall pay to the Administrative
Agent for distribution to each Lender that has a Tranche B Commitment, in cash,
on the Tranche B Effective Date, a one-time facility fee (the "Tranche B
Facility Fee") of 1.10% of such Tranche B Lender's Tranche B Commitment, other
than any portion thereof reflecting the transfer of any undrawn portion of such
Lender's Tranche A Commitment on the Tranche A Termination Date.

     (e) Administrative Agent's Fees. The Borrower shall pay to the
Administrative Agent for its own account the fee separately agreed with the
Administrative Agent.

     SECTION 2.04. Termination or Reduction of the Commitments. (a) The Borrower
shall have the right, upon at least 10 Business Days' notice to the
Administrative Agent, to terminate in whole or reduce ratably in part the unused
portions of the respective Commitments of the Lenders; provided that each
partial reduction shall be in the aggregate amount of $3,000,000 or an integral
multiple of $1,000,000 in excess thereof.

     (b) On any date on which a mandatory prepayment of Advances would be
required to be prepaid pursuant to Section 2.08(b), the Commitments shall be
automatically reduced by an amount equal to the excess, if any, of the aggregate
principal amount of the Advances that would be required to be prepaid on such
date if the Commitments were fully drawn (whether or not in fact available for
draw on such date) over the aggregate principal unpaid amount of the Advances
then outstanding.

     SECTION 2.05. Repayment of Advances. (a) Repayment of Tranche A Advances.
The Borrower shall repay to the Administrative Agent for the ratable account of
the Lenders that have made Tranche A Advances the aggregate outstanding
principal amount of the Tranche A Advances in six installments payable on the
last day of every sixth calendar month after the second anniversary of the
Tranche A Effective Date each in an amount equal to the product obtained by
multiplying (i) the unpaid principal amount of such Tranche A Advances
outstanding on the Tranche A Termination Date by (ii) 16-2/3%; provided that the
last such installment shall be in an amount necessary to repay in full the
aggregate then-unpaid principal amount of the Tranche A Advances. Each repayment
shall be applied to the unpaid principal amount of Tranche A Advances ratably
across all Borrowings. At the time of such repayment,
<PAGE>

                                       31

the Borrower also will pay accrued and unpaid interest owing on the principal
amount of the Tranche A Advances then being repaid.

     (b) Repayment of Tranche B Advances. The Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders that have made
Tranche B Advances the aggregate outstanding principal amount of the Tranche B
Advances in seven installments payable on the last day of every sixth calendar
month after the eighteen month anniversary of the Tranche B Effective Date each
in an amount equal to the product obtained by multiplying (a) the unpaid
principal amount of such Tranche B Advances outstanding on the Tranche B
Termination Date by (b) 14.29%; provided that the last such installment shall be
in an amount necessary to repay in full the unpaid principal amount of the
Tranche B Advances. Each repayment shall be applied to the unpaid principal
amount of Tranche B Advances ratably across all Borrowings. At the time of such
repayment, the Borrower also will pay accrued and unpaid interest owing on the
principal amount of the Tranche B Advances then being repaid.

     SECTION 2.06. Interest. (a) Scheduled Interest. Except as otherwise
provided in Section 2.09, the Borrower shall pay interest on the unpaid
principal amount of each Advance owing to each Lender from the date of such
Advance until such principal amount shall be paid in full, at a rate per annum
equal at all times during each Interest Period for such Advance to the sum of
(x) the Eurodollar Rate for such Interest Period for such Advance plus (y)
5.75%, payable in arrears on the last day of such Interest Period and on the
date such Advance shall be paid in full.

     (b) Default Interest. Upon the occurrence and during the continuance of an
Event of Default under Section 6.01(a), the Borrower shall pay interest on (i)
the unpaid principal amount of each Advance owing to each Lender, payable in
arrears on the dates referred to in clause (a) above or Section 2.09(c) or (d)
and on demand, at a rate per annum equal at all times to 2% per annum above the
rate per annum required to be paid on such Advance pursuant to clause (a) above
or Section 2.09(c) or (d) and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable hereunder that is not paid
when due, from the date such amount shall be due until such amount shall be paid
in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid on Advances pursuant to clause (a) above.

     SECTION 2.07. Interest Rate Determination. The Administrative Agent shall
give prompt notice to the Borrower and the Lenders of the applicable interest
rate determined by the Administrative Agent for purposes of Section 2.06(a) or
Section 2.09(c) or (d) prior to the commencement of each Interest Period;
provided that any failure by the Administrative Agent to give such notice shall
not affect such applicable interest rate or the Borrower's obligations
hereunder, or give rise to any liability on behalf of the Administrative Agent.
<PAGE>

                                       32

     SECTION 2.08. Prepayments. (a) Optional Prepayments. The Borrower may, upon
at least 10 Business Days' notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding principal amount of
the Advances; provided that (i) each partial prepayment shall be in an aggregate
principal amount of $3,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) the Borrower shall be obligated to reimburse the Lenders in
respect thereof pursuant to Section 8.04(c).

     (b) Mandatory Prepayments. (i) Sales of Assets. The Borrower shall, on each
date on which the Borrower or any Subsidiary thereof receives any Net Cash
Proceeds from the sale, lease, transfer or other disposition (other than
commercial sales in the ordinary course of business), of any Material Assets of
the Borrower or any Subsidiary thereof, prepay an aggregate principal amount of
the Advances equal to the Lenders' Pro Rata Portion of such Net Cash Proceeds
(or, if less, the aggregate principal amount of all Advances); provided that the
Borrower shall not be required to make any prepayment pursuant to this
subsection from any such Net Cash Proceeds it intends to apply to the purchase
of any Capital Assets so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;

          (B) the Borrower shall have purchased such Capital Assets within 180
     days after the date the Borrower or a Subsidiary thereof received such Net
     Cash Proceeds; and

          (C) the Borrower shall have provided the Administrative Agent with
     evidence satisfactory to the Administrative Agent that such Capital Assets
     were purchased within such 180-day period.

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (ii) Insurance Recoveries. The Borrower shall, on each date on which it or
any Subsidiary thereof receives any Net Cash Proceeds from any property and
casualty insurance recovery, prepay an aggregate principal amount of the
Advances equal to the Lenders' Pro Rata Portion of such Net Cash Proceeds (or,
if less, the aggregate principal amount of all Advances); provided that the
Borrower shall not be required to make any prepayment pursuant to this
subsection from any such Net Cash Proceeds it intends to apply to the repair or
replacement of the damaged property so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;
<PAGE>

                                       33

          (B) such Net Cash Proceeds shall have been so applied within 60 days
     after the date the Borrower or a Subsidiary thereof received such Net Cash
     Proceeds; and

          (C) the Borrower or any Subsidiary thereof shall have provided the
     Administrative Agent with evidence satisfactory to the Administrative Agent
     that such Net Cash Proceeds were so applied within such 60-day period.

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (iii) Condemnation Recoveries. The Borrower shall, on each date on which it
or any Subsidiary thereof receives any Net Cash Proceeds from any condemnation
proceeds or similar awards received by the Borrower or any Subsidiary thereof in
connection with any governmental taking of assets of the Borrower or any
Subsidiary thereof, prepay an aggregate principal amount of the Advances equal
to the Lenders' Pro Rata Portion of such Net Cash Proceeds (or, if less, the
aggregate principal amount of all Advances); provided that the Borrower shall
not be required to make any prepayment pursuant to this subsection from any such
Net Cash Proceeds it intends to apply to the replacement of the condemned or
taken property so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;

          (B) such Net Cash Proceeds shall have been so applied within 60 days
     after the date the Borrower or a Subsidiary thereof received such Net Cash
     Proceeds; and

          (C) the Borrower or any Subsidiary thereof shall have provided the
     Administrative Agent with evidence satisfactory to the Administrative Agent
     that such Net Cash Proceeds were so applied within such 60-day period.

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (iv) Offering of Debt Securities. The Borrower shall, on each date on which
it or any Subsidiary receives any Net Cash Proceeds from the issuance of any
securities evidencing Debt of the Borrower or a Subsidiary thereof issued (A) to
qualified institutional buyers pursuant to Regulation S under the United States
Securities Act of 1933 (as amended from time to time,
<PAGE>

                                       34

the "Securities Act"), (B) under Section 4(2) of the Securities Act or (C) in
accordance with the registration and delivery requirements of Section 5 of the
Securities Act, prepay an aggregate principal amount of the Advances comprising
part of the same Borrowings equal to 50% of the Lenders' Pro Rata Portion of
such Net Cash Proceeds (or, if less, the aggregate principal amount of all
Advances).

     (v) Excess Cash Flow. The Borrower shall, within five Business Days of each
date upon which the Borrower is required to furnish to the Lenders its annual
financial statements pursuant to Section 5.03(d), deposit into an escrow account
(the terms of which shall be reasonably satisfactory to the Administrative
Agent) an amount equal to 50% of the Borrower's Excess Cash Flow for the
Borrower's fiscal year reflected in such report (for such fiscal year, the
"Excess Cash Flow Amount"). Upon the last day of the Interest Period during
which such deposit was made, the Borrower shall prepay an aggregate principal
amount of the Advances equal to the Lenders' Pro Rata Portion of such Excess
Cash Flow Amount (or, if the outstanding principal amount of the Advances is
less than the Lenders' Pro Rata Portion of such Excess Cash Flow Amount on such
day, the aggregate principal amount of all Advances). Any amounts remaining in
such escrow amount after such prepayment shall be released to the Borrower
immediately following such prepayment.

     (vi) Notice. The Borrower shall give the Administrative Agent at least five
Business Days' prior written notice of (A) each prepayment required by this
Section 2.08(b) and (B) the application of any Net Cash Proceeds pursuant to any
notice delivered in accordance with Section 2.08(b)(ii) or (iii). Such Notice
shall state the aggregate amount of such prepayment or application, as the case
may be, and the date upon which such prepayment or application shall or has been
made.

     (c) Mechanics of Prepayments. All prepayments under this Section 2.08 shall
be made together with accrued interest to the date of such prepayment on the
principal amount prepaid and together with any amounts owing to the Lenders
pursuant to Section 8.04(c) in respect of such prepayment. Any prepayment of
Advances pursuant to this Section 2.08 shall be applied to the installments
thereof in inverse order of maturity, ratably across all Advances being so
prepaid. All prepayments under this Section 2.08 shall be made ratably with
prepayments to lenders under the other Permitted Loan Agreements (as defined in
the Intercreditor Agreement), in proportion with the outstanding principal
amounts owing by the Borrower under the Permitted Loan Agreements .

     SECTION 2.09. Increased Costs, Etc. (a) If, due to either (i) the
introduction of or any change (other than any change by way of imposition or
increase of reserve requirements included in the Eurodollar Rate Reserve
Percentage) in or in the interpretation of any law or regulation or (ii) the
compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or of making, funding
or maintaining Advances
<PAGE>

                                       35

(excluding for purposes of this Section 2.09 any such increased costs resulting
from (A) Taxes or Other Taxes (as to which Section 2.11 shall govern) or (B)
changes in the basis of taxation of overall net income or overall gross income
by the jurisdiction or state under the laws of which such Lender is organized or
has its Lending Office or any political subdivision thereof), then the Borrower
shall from time to time, upon demand by such Lender (with a copy of such demand
to the Administrative Agent), pay to the Administrative Agent for the account of
such Lender additional amounts sufficient to compensate such Lender for such
increased cost; provided that a Lender claiming additional amounts under this
Section 2.09(a) agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different Lending
Office if the making of such a designation would avoid the need for, or reduce
the amount of, such increased cost that may thereafter accrue and would not, in
the reasonable judgment of such Lender be otherwise disadvantageous to such
Lender. If any Lender becomes entitled to claim any additional amounts pursuant
to this Section 2.09(a), it will promptly notify the Borrower (with a copy of
such notice to the Administrative Agent) of the event by reason of which it has
become so entitled and provide a detailed calculation of the amount to be paid;
provided that no Lender shall be required to disclose in connection with such
calculation any information that it deems to be proprietary or confidential,
including, without limitation, any allocation of internal costs. A certificate
as to the amount of such increased cost, submitted to the Borrower by such
Lender, shall be conclusive and binding for all purposes, absent manifest error.

     (b) If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender's commitment to lend hereunder then,
upon demand by such Lender (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to the Administrative Agent for the account of
such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be
allocable to the existence of such Lender's commitment to lend hereunder;
provided that, before making any such demand, such Lender will use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Lending Office if the making of such a
designation would allow such Lender or its Lending Office to continue to perform
its obligations to make Advances or to continue to fund or maintain Advances and
would not, in the judgment of such Lender, be otherwise disadvantageous to such
Lender. If any Lender becomes entitled to claim any additional amounts pursuant
to this Section 2.09(b), it will promptly notify the Borrower (with a copy of
such notice to the Administrative Agent) of the event by reason of which it has
become so entitled and provide a detailed calculation of the amount to be paid;
provided that no Lender shall be required to disclose in connection with such
calculation any information that it deems to be proprietary or confidential,
including, without limitation, any allocation of internal costs. A
<PAGE>

                                       36

certificate as to such amounts submitted to the Borrower by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

     (c) If, with respect to any Advances, a majority in interest of the Lenders
participating in such Advances notify the Administrative Agent that the
Eurodollar Rate for any Interest Period for such Advances will not adequately
reflect the cost to such Lenders of making, funding or maintaining their
Advances for such Interest Period, the Administrative Agent shall forthwith so
notify the Borrower, whereupon (i) each such Advance will automatically, on the
last day of the then existing Interest Period therefor, cease to bear interest
pursuant to Section 2.06(a) and from such date bear interest at a rate per annum
equal at all times to the sum of (A) the Base Rate in effect from time to time
plus (B) 6.25%, payable in arrears semi-annually on the last day of December and
June until the Administrative Agent shall notify the Borrower that such Lenders
have determined that the circumstances causing such suspension no longer exist
and (ii) the Borrower shall pay interest on the unpaid principal amount of each
Advance made after the giving of such notice by the Required Lenders from the
date of such Advance until the earlier of (A) the payment in full of such
Advance and (B) the date upon which the Administrative Agent has notified the
Borrower that such Lenders have determined that the circumstances causing such
suspension no longer exist, at a rate per annum equal to the actual cost
incurred by the Lenders in making such Advance plus 6.25%, payable in arrears
semi-annually on the last day of December and June. A certificate as to the rate
referred to in clause (ii) above submitted to the Borrower by such Lenders shall
be conclusive and binding for all purposes, absent manifest error.

     (d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Lending Office
to perform its obligations hereunder to make Advances or to continue to fund or
maintain Advances hereunder, then, on notice thereof and demand therefor by the
Required Lenders to the Borrower through the Administrative Agent, (i) each
Advance will automatically, on such demand, cease to bear interest pursuant to
Section 2.06(a) and from such demand bear interest at a rate per annum equal at
all times to the sum of (A) the Base Rate in effect from time to time plus (B)
6.25%, payable in arrears semi-annually on the last day of each December and
June until the Administrative Agent shall notify the Borrower that such Lender
has determined that the circumstances causing such suspension no longer exist,
and (ii) the Borrower shall pay interest on the unpaid principal amount of each
Advance made after the giving of such notice by the Required Lenders from the
date of such Advance until the earlier of (A) the payment in full of such
Advance and (B) the date upon which the Administrative Agent has notified the
Borrower that such Lenders have determined that the circumstances causing such
suspension no longer exist, at a rate per annum equal to the actual cost
incurred by the Lenders in making such Advance plus 6.25%, payable in arrears
semi-annually on the last day of December and June; provided that, before making
any such demand, such Lender will use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to designate a different
Lending Office if the making of such a designation would allow such Lender or
its Lending
<PAGE>

                                       37

Office to continue to perform its obligations to make Advances or to continue to
fund or maintain Advances and would not, in the judgment of such Lender, be
otherwise disadvantageous to such Lender. A certificate as to the rate referred
to in clause (ii) above submitted to the Borrower by such Lenders shall be
conclusive and binding for all purposes, absent manifest error.

     SECTION 2.10. Payments and Computations. (a) The Borrower shall make each
payment hereunder and under the Notes issued hereunder not later than 11:00 A.M.
(New York City time) on the day when due in U.S. dollars to the Administrative
Agent at the Administrative Agent's Account in same-day funds. The
Administrative Agent will promptly thereafter cause to be distributed like funds
relating to the payment of principal or interest or fees ratably (other than
amounts payable pursuant to Section 2.09, 2.11 or 8.04(c)) to the Lenders
entitled thereto for the account of their respective Lending Offices, and like
funds relating to the payment of any other amount payable to any Lender to such
Lender for the account of its Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an
Assignment and Acceptance and recording of the information contained therein in
the Register pursuant to Section 8.07(d), from and after the effective date
specified in such Assignment and Acceptance, the Administrative Agent shall make
all payments hereunder and under the Notes issued hereunder in respect of the
interest assigned thereby to the Lender assignee thereunder, and the parties to
such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves
and the Borrower shall have no further obligation to such assignee with respect
to such adjustments.

     (b) Promptly on request by any Lender, the Borrower will deliver to such
Lender a Note payable to the order of such Lender.

     (c) All computations of interest based on the Base Rate shall be made by
the Administrative Agent on the basis of a year of 365 or 366 days, as the case
may be, and all computations of other interest and of fees shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or fees are payable. Each
determination by the Administrative Agent of an interest rate hereunder shall be
conclusive and binding for all purposes, absent manifest error.

     (d) Whenever any payment hereunder or under the Notes issued hereunder
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or commitment
fee, as the case may be; provided that, if such extension would cause payment of
interest on or principal of Advances to be made in the next following calendar
month, such payment shall be made on the next-preceding Business Day.
<PAGE>

                                       38

     (e) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Lenders hereunder
that the Borrower will not make such payment in full, the Administrative Agent
may assume that the Borrower has made such payment in full to the Administrative
Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount
equal to the amount then due such Lender. If and to the extent the Borrower
shall not have so made such payment in full to the Administrative Agent, each
Lender shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the
date such amount is distributed to such Lender until the date such Lender repays
such amount to the Administrative Agent, at the Federal Funds Rate.

     (f) The obligation of the Borrower to make any payment under this Agreement
or any other Loan Document, including without limitation payments of principal,
interest, fees, costs and expenses due in accordance with the terms of the Loan
Documents, shall be unconditional and absolute, irrespective among other things
of the following:

          (i) any set-off, counterclaim, recoupment, deduction, abatement,
     suspension, diminution, reduction, defense or other right that the Borrower
     may have against the Vendor at any time for any reason whatsoever arising
     under or pursuant to the Supply Agreement or otherwise relating to the
     purchase of goods, equipment, other property or services from or by the
     Vendor;

          (ii) any defect in the condition, design, operation or fitness for use
     of, or any damage to or loss or destruction of, any equipment or material
     provided by the Vendor;

          (iii) any actual or alleged default by the Vendor or any other Person
     under the Supply Agreement; or

          (iv) any other fact or circumstance relating to the Supply Agreement.

     SECTION 2.11. Taxes. (a) Any and all payments by the Borrower hereunder or
under the Notes issued hereunder shall be made, in accordance with Section 2.10,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and the Administrative
Agent, taxes that are imposed on its overall net income by the United States and
taxes that are imposed on its overall net income (and franchise taxes imposed in
lieu thereof) by the state or foreign jurisdiction under the laws of which such
Lender or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof and, in the case of each Lender, taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction of such Lender's Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions,
<PAGE>

                                       39

charges, withholdings and liabilities in respect of payments hereunder or under
the Notes being hereinafter referred to as "Taxes"). If the Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note to any Lender or the Administrative Agent, (i) the
sum payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.11) such Lender or the Administrative Agent (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

     (b) In addition, the Borrower shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performing under, or otherwise with respect to,
this Agreement, the Notes or the other Loan Documents (hereinafter referred to
as "Other Taxes").

     (c) The Borrower shall indemnify each Lender and the Administrative Agent
for and hold it harmless against the full amount of Taxes or Other Taxes
(including without limitation taxes of any kind imposed by any jurisdiction on
amounts payable under this Section 2.11) imposed on or paid by such Lender or
the Administrative Agent (as the case may be) and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto.
This indemnification shall be made within 30 days from the date such Lender or
the Administrative Agent (as the case may be) makes written demand therefor.

     (d) Within 60 days after the date of any payment of Taxes, the Borrower
shall furnish to the Administrative Agent, at its address referred to in Section
8.02, the original or a certified copy of a receipt evidencing such payment. In
the case of any payment hereunder or under the Notes by or on behalf of the
Borrower through an account or branch outside the United States or by or on
behalf of the Borrower by a payor that is not a United States person, if the
Borrower determines that no Taxes are payable in respect thereof, the Borrower
shall furnish, or shall cause such payor to furnish, to the Administrative
Agent, at such address, an opinion of counsel acceptable to the Administrative
Agent stating that such payment is exempt from Taxes. For purposes of this
subsection (d) and subsection (e), the terms "United States" and "United States
person" shall have the meanings specified in Section 7701 of the Internal
Revenue Code or (in the case of a Lender that has certified in writing to the
Administrative Agent that it is not a "bank" as defined in Section 881(c)(3)(A)
of the Internal Revenue Code) form W-8 (and, if such Lender delivers a form W-8,
a certificate representing that such Lender is not a "bank" for purposes of
Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder
(within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the
Borrower and is not a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Internal Revenue Code)), as
appropriate, or any successor or other form prescribed by the Internal Revenue
Service, certifying that such Lender is exempt from or entitled to a reduced
rate
<PAGE>

                                       40

of United States withholding tax on payments pursuant to this Agreement or the
Notes or, in the case of a Lender providing a form W-8, certifying that such
Lender is a foreign corporation, partnership, estate or trust. If the forms
provided by a Lender at the time such Lender first becomes a party to this
Agreement indicates a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender provides the appropriate form certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided that,
if at the date of the Assignment and Acceptance pursuant to which a Lender
becomes a party to this Agreement, the Lender assignor was entitled to payments
under subsection (a) in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent, the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender assignee on such date. If any form or
document referred to in this subsection (d) requires the disclosure of
information, other than information necessary to compute the tax payable and
information required on the date hereof by Internal Revenue Service form 1001,
4224 or W-8 (or the related certificate described above), that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof to
the Borrower and shall not be obligated to include in such form or document such
confidential information.

     (e) For any period with respect to which a Lender has failed to provide the
Borrower with the appropriate form described in Section 2.11(d) (other than if
such failure is due to a change in law occurring subsequent to the date on which
a form originally was required to be provided, or if such form otherwise is not
required under subsection (d) above), such Lender shall not be entitled to
indemnification under Section 2.11(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided that should a Lender
become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as the Lender shall reasonably
request to assist the Lender to recover such Taxes.

     SECTION 2.12. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances owing to it (other than
pursuant to Section 2.09, 2.11 or 8.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided that if all or any
portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender's ratable share (according to the
proportion of (a) the amount of such Lender's required repayment to (b) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrower agrees that any
<PAGE>

                                       41

Lender so purchasing a participation from another Lender pursuant to this
Section 2.12 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. With respect to any reduction or
termination of Commitments pursuant to Section 2.04, the reduction or
termination of the Commitments shall be made ratably among the Commitments of
all Lenders outstanding at the time of such reduction or termination. With
respect to any repayment or prepayment made by the Borrower hereunder other than
scheduled amortization pursuant to Section 2.05, such repayment or prepayment
shall be distributed ratably among all Lenders in proportion with the principal
amount of the Advances held by each such Lender outstanding at the time of such
repayment or prepayment. With respect to any repayment of scheduled amortization
made by the Borrower hereunder pursuant to Section 2.05, such repayments shall
be distributed ratably among all Lenders of the relevant tranche in proportion
with the principal amount of the Advances of such tranche held by each such
Lender of outstanding at the time of such repayment or prepayment.

     SECTION 2.13. Use of Proceeds. The proceeds of the Advances shall be
available to the Borrower and its Subsidiaries, directly or indirectly, solely
(a) to make Back-to-Back Loans that shall be used by Operating Subsidiaries to
purchase telecommunications equipment, software, engineering and other services
pursuant to or in accordance with the Supply Agreement and subject to the
limitations set forth therein for the purpose of planning, constructing,
operating and maintaining Networks in the Core Territories, (b) to pay interest
payable to the Lenders on each interest payment date occurring on or prior to
the first anniversary of the Tranche A Effective Date and (c) to pay fees
payable pursuant to Section 2.03 and expenses payable pursuant to Section
8.04(a)(i)(A) and (B), in each case with respect to the Lenders. The proceeds of
all Advances to be used as described in clause (a) of the preceding sentence
shall be paid directly to the financial institution providing Back-to-Back Loans
and the proceeds of such Back-to-Back Loans made to Operating Subsidiaries in
Argentina, Brazil and Peru shall at all times be held in Blocked Accounts until
disbursed to pay invoices under the Supply Agreement.

     SECTION 2.14. First Eurodollar Method and Second Eurodollar Method. The
First Eurodollar Method shall be applicable at all times until such time as the
Second Eurodollar Method becomes applicable. If there is a Lender in addition to
or other than the Initial Lender (other than an Affiliate of the Initial Lender)
and the Administrative Agent at the direction of any Lender shall have notified
the Borrower that the Second Eurodollar Method shall be applicable, the Second
Eurodollar Method shall become applicable immediately as of the date of such
notice for all new Advances made as of and following the date of such notice.
After becoming applicable, the Second Eurodollar Method shall remain applicable
at all times thereafter.

     SECTION 2.15. Redistribution of Payments. In the event that a repayment
under Section 2.05 or a prepayment under Section 2.08 is required to be
redistributed by the Lenders to the lenders (the "Other Lenders") under another
Permitted Loan Agreement (as defined in the
<PAGE>

                                       42

Intercreditor Agreement) pursuant to Section 4.2 or 4.3 of the Intercreditor
Agreement, (i) the Borrower authorizes the Lenders to act as its agent in
connection with such redistribution and make such redistribution to the Other
Lenders on its behalf and acknowledges that any amount so redistributed shall be
deemed not to have been paid by the Borrower to the Lenders in their capacity as
Lenders hereunder and (ii) the Lenders agree to act as agent for the Borrower in
connection with such redistribution and agree to make such redistribution to the
Other Lenders on its behalf. In the event that a repayment or prepayment made by
the Borrower pursuant to another Permitted Loan Agreement to the Other Lenders
party thereto is required to be redistributed by such Other Lenders pursuant to
Section 4.2 or 4.3 of the Intercreditor Agreement, the Lenders acknowledge that
any amount so redistributed (I) shall have been paid by the Other Lenders acting
as agent for the Borrower in connection with such redistribution, (II) shall be
deemed to have been paid by the Borrower to the Lenders in respect of the
Advances pursuant to Section 2.05 or 2.08, as the case may be, and (III) shall
be allocated among the Lenders in accordance with Section 2.12.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

     SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01(a).
Section 2.01(a) of this Agreement shall become effective on and as of the first
date (the "Tranche A Effective Date") on which the following conditions
precedent have been satisfied:

          (a) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of their Subsidiaries pending
     or, to the best of the Borrower's knowledge, threatened before any court,
     governmental agency or arbitrator that (i) could be reasonably likely to
     have a Material Adverse Effect other than the matters described on Schedule
     3.01(a)(i) hereto (the "Disclosed Litigation") or (ii) purports to
     adversely affect the legality, validity or enforceability of any material
     provision of this Agreement, any Note or any other Loan Document or the
     consummation of any of the transactions contemplated hereby.

          (b) All material governmental and third party consents and approvals
     necessary in connection with the transactions contemplated hereby which are
     required to be obtained by the Borrower in connection with its activities
     being conducted on such date and all Regulatory Permits shall have been
     obtained and shall remain in effect; all applicable waiting periods shall
     have expired without any action being taken by any competent authority.

          (c) The Borrower shall have a minimum amount of $145,000,000 in fully
     paid-up equity capital, which shall include expenditures of the Parent
     prior to the date
<PAGE>

                                       43

     hereof in connection with the development of the business of the Borrower
     and its Subsidiaries.

          (d) The Supply Agreement shall have been duly executed and delivered
     and be in full force and effect and there shall be no material default
     thereunder, and the Administrative Agent shall have received a certified
     copy thereof.

          (e) The Intercreditor Agreement shall have been duly executed and
     delivered and be in full force and effect and there shall be no material
     default thereunder, and the Administrative Agent shall have received a
     certified copy thereof.

          (f) The Collateral Agent Letter shall have been duly executed and
     delivered and be in full force and effect, and the Administrative Agent
     shall have received a certified copy thereof.

          (g) All stock and capital contributions of the Borrower's Subsidiaries
     shall be owned by the Borrower or one or more of the Borrower's
     Subsidiaries, in each case free and clear of any Liens (except for the
     Liens created pursuant to the Security Agreements), except as set forth in
     Section 4.01(b).

          (h) The Collateral Agent and/or the Lenders shall have a valid and
     perfected first-priority Lien and security interest in the capital stock
     and capital contributions of all the Operating Subsidiaries and, to the
     extent permitted by applicable law and subject to Permitted Liens, in the
     Collateral referred to in the Security Agreements, all searches necessary
     or desirable in connection with such Liens and security interests having
     been duly made.

          (i) The Administrative Agent shall have received on or before the
     Tranche A Effective Date the following, each dated such day, in form and
     substance satisfactory to the Administrative Agent and (except for the
     Notes) in sufficient copies for each Lender:

               (i) Notes payable to the order of the Initial Lender.

               (ii) A business plan, in form and substance satisfactory to the
          Lenders.

               (iii) A copy of the annual audit report for the Borrower for the
          most recent fiscal year of the Borrower and its Subsidiaries,
          containing Consolidated and consolidating balance sheets of the
          Borrower and its Subsidiaries as of the end of such fiscal year and
          Consolidated and consolidating statements of income and cash flows of
          the Borrower and its Subsidiaries for such fiscal year.
<PAGE>

                                       44

               (iv) Consolidated and consolidating balance sheets of the
          Borrower and its Subsidiaries as of the end of each fiscal quarter
          since the most recent fiscal year of the Borrower and Consolidated and
          consolidating statements of income and cash flows of the Borrower and
          its Subsidiaries for the period commencing at the end of the most
          recent fiscal year of the Borrower and ending with the end of its most
          recent fiscal quarter.

               (v) Evidence that the Borrower and its Subsidiaries have obtained
          Licenses sufficient to permit the operation of the Networks up until
          the seventh anniversary of the date hereof, in form and substance
          satisfactory to the Lenders.

               (vi) Certificates of the Borrower and each of its Subsidiaries
          executing a Guaranty or Security Agreement on or prior to the Tranche
          A Effective Date, in each case attaching the charter of such Person
          and each amendment thereto on file in such office and certifying that
          (A) such charter is a true and complete copy thereof, (B) such
          amendments are the only amendments to such charter, (C) such Person
          has paid all franchise taxes to the date of such certificate and (D)
          such Person is duly organized and, if applicable, in good standing
          under the laws of its jurisdiction of incorporation.

               (vii) Certificates of each of the Borrower and its Subsidiaries
          executing a Guaranty or Security Agreement on or prior to the Tranche
          A Effective Date, signed on behalf of each such Person by the
          President, a Vice President, the Secretary or any Assistant Secretary
          of each such Person (the statements made in such certificate shall be
          true and correct on and as of the Tranche A Effective Date),
          certifying as to:

                    (A) the absence of any amendments to the charter of each
               such Person since the date of the certificate referred to in
               3.01(i)(vi);

                    (B) a true and correct copy of the by-laws of such Person as
               in effect on the Tranche A Effective Date;

                    (C) the due incorporation and good standing of such Person
               as a corporation or a limited liability company, as the case may
               be, under the laws of the jurisdiction of its organization and
               the absence of any proceeding for the dissolution or liquidation
               of such Person;

                    (D) that attached thereto is a true and complete copy of
               resolutions duly adopted by the board of directors or the general
               assembly of partners, as the case may be, of such Person
               authorizing the execution,
<PAGE>

                                       45

               delivery and performance of each Loan Document to which such
               Person is a party;

                    (E) in the case of each such Person, that such resolutions
               have not been revoked, annulled or modified in any manner and are
               in full force and effect; and

                    (F) in the case of each such Person, the incumbency and
               specimen signature of each officer of such Person executing each
               of the Loan Documents to which such Person is a party, on behalf
               of such Person, and a certification of another officer of each
               such Person as to the signature of the officers signing
               certificates referred to in this subclause (vii).

               (viii) Security Agreements, in form and substance reasonably
          satisfactory to the Administrative Agent, duly executed by the
          Borrower, each Intermediate Holding Company Subsidiary and each
          Operating Subsidiary party thereto, together with:

                    (A) certificates representing any Pledged Shares referred to
               therein;

                    (B) executed copies of any proper financing statements and
               other filings and registrations filed in order to perfect and
               protect the Liens created by the Security Agreements, covering
               the Collateral described therein, and any acknowledgments which
               may be customarily delivered by the appropriate authorities of
               the jurisdictions in which such Liens have been perfected and
               protected, in each case in form and substance satisfactory to the
               Lenders;

                    (C) copies of any Assigned Agreements referred to in the
               Security Agreements; and

                    (D) evidence that all other action necessary as of such date
               in order to perfect and protect the Liens created by the Security
               Agreements has been taken.

               (ix) Guaranties duly executed by each Operating Subsidiary and
          Intermediate Holding Company Subsidiary.
<PAGE>

                                       46

               (x) A favorable opinion of Stroeter & Ohno Advogados Associados,
          Brazilian counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xi) A favorable opinion of Cibils, Blaquier & Boneo Villagas,
          Argentine counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xii) A favorable opinion of Posse Herrera & Ruiz, Colombian
          counsel for the Loan Parties, in form and substance reasonably
          satisfactory to the Administrative Agent.

               (xiii) A favorable opinion of Arias, Fabrega & Fabrega,
          Panamanian counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xiv) A favorable opinion of Miranda & Amado, Peruvian counsel
          for the Loan Parties, in form and substance reasonably satisfactory to
          the Administrative Agent

               (xv) A favorable opinion of Milbank, Tweed, Hadley & McCloy, New
          York counsel for the Loan Parties, in form and substance reasonably
          satisfactory to the Administrative Agent.

               (xvi) A favorable opinion of Pinheiro Guimaraes - Advogados,
          Brazilian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xvii) A favorable opinion of Marval, O'Farrell & Mairal,
          Argentine counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xviii) A favorable opinion of Arenas, Lopez, Montealgre y
          Plazas, Colombian counsel for the Secured Creditors, in form and
          substance reasonably satisfactory to the Administrative Agent.

               (xix) A favorable opinion of Aleman, Cordero, Galindo & Lee,
          Panamanian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.
<PAGE>

                                       47

               (xx) A favorable opinion of Estudio Luis Echecopar Garcia,
          Peruvian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xxi) A favorable opinion of Wilson, Sonsini, Goodrich and
          Rosati, U.S. counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xxii) Copies of process-agent letters for each of the Loan
          Parties organized in a jurisdiction outside the United States.

          (j) The Borrower shall have paid all accrued fees and expenses of the
     Agents and the Lenders (including the accrued fees and expenses of counsel
     and local counsel to the Agents and the Lenders).

          (k) The Ericsson Credit Agreement shall have become effective on
     substantially the same terms and conditions as those contained in this
     Agreement.

     SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of
each Lender having a Commitment to make an Advance on the occasion of each
Borrowing shall be subject to the conditions precedent that on the date of such
Borrowing the following statements shall be true (and each of the giving of the
applicable Notice of Borrowing and the acceptance by the Borrower of the
proceeds of such Borrowing shall constitute a representation and warranty by the
Borrower that on the date of such Borrowing such statements are true):

          (a) the representations and warranties contained in Section 4.01 shall
     be correct in all material respects on and as of the date of such Borrowing
     (or, to the extent stated to relate to an earlier date, as of such earlier
     date), before and after giving effect to such Borrowing and to the
     application of the proceeds therefrom, as though made on and as of such
     date,

          (b) no addition or amendment to the authorizations, approvals or other
     actions by, and notices or filings with, any governmental authority or
     third party set forth on the Schedule 4.01(f) delivered on the Tranche A
     Effective Date shall materially adversely affect (i) the due execution,
     delivery, recordation, filing or performance by any Loan Party of this
     Agreement, the Notes or any other Loan Document to which it is or is to be
     a party or for the consummation of the transactions contemplated hereby and
     thereby, (ii) the grant of the Liens granted by any Loan Party pursuant to
     this Agreement, the Security Agreements and the Notes (including to the
     extent permitted by applicable law and subject to Permitted Liens and
     Shared Liens the first-priority nature thereof) other than Permitted Liens
     and Shared Liens and (iii) the exercise by the Administrative Agent, the
     Collateral Agent or any Lender of its rights under this Agreement, the
     Notes or any other
<PAGE>

                                       48

     Loan Document or of the remedies in respect of the Collateral granted
     pursuant to the Security Agreements, in each case as reasonably determined
     by the Lenders,

          (c) no event shall have occurred and be continuing, or would result
     from such Borrowing or from the application of the proceeds therefrom, that
     constitutes a Default, and

          (d) at any time that the Initial Lender shall have any Commitment
     hereunder, the Supply Agreement has not been terminated by Vendor for cause
     in accordance with Section 14.2 of the Supply Agreement or by Borrower
     without cause, in each case in accordance with the terms thereof,

provided that the provisions of clauses (a), (b) and (c) of this Section 3.02
shall not be applicable with respect to any Borrowing to the extent the proceeds
thereof will be used to pay interest in accordance with Section 2.13

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     SECTION 4.01. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows as of the Tranche A Effective Date, and
represents and warrants as follows on the date of each Borrowing hereunder:

          (a) The Borrower (i) has been duly formed and is validly existing and
     in good standing as a corporation under the laws of Delaware with full
     corporate power and authority (including without limitation all material
     governmental licenses, permits and other approvals) necessary to conduct
     its business as described herein, (ii) is duly qualified and is authorized
     to do business and is in good standing in each other jurisdiction in which
     the conduct of its business requires it to be so qualified or authorized
     and (iii) has all requisite corporate power and authority to own its
     properties and to carry on its business as now conducted and as proposed to
     be conducted.

          (b) Set forth on Schedule 4.01(b) hereto as amended from time to time
     pursuant to Section 5.03(u) is a complete and accurate list of all
     Operating Subsidiaries, Intermediate Holding Company Subsidiaries and
     Insignificant Subsidiaries showing (as to each such Subsidiary) whether it
     is an Operating Subsidiary, an Intermediate Holding Company Subsidiary or
     an Insignificant Subsidiary, the jurisdiction of its incorporation, the
     number of shares of each class of capital stock or participations
     authorized, and the number outstanding, and the percentage of the
     outstanding shares or participations of each such class owned (directly or
     indirectly) by the Borrower and the number of shares
<PAGE>

                                       49

     or participations covered by all outstanding options, warrants, rights of
     conversion or purchase and similar rights. All of the outstanding capital
     stock or participations of all of the Subsidiaries set forth on Schedule
     4.01(b) hereto, as amended from time to time pursuant to Section 5.03(u),
     has been fully issued, is fully paid and non-assessable and is owned by the
     Borrower or one or more of its Subsidiaries, except as set forth on
     Schedule 4.01(b) hereto, free and clear of all Liens, except those created
     by the Security Agreements. Each Subsidiary set forth on Schedule 4.01(b)
     hereto, as amended from time to time pursuant to Section 5.03(u), (i) is a
     corporation or a limited liability company duly organized, validly existing
     and, if applicable, in good standing under the laws of the jurisdiction of
     its incorporation, (ii) is duly qualified and, if applicable, in good
     standing as a foreign corporation in each other jurisdiction in which the
     conduct of its business requires it to so qualify and (iii) has all
     requisite corporate power and authority to own or lease and operate its
     properties and to carry on its business as now conducted and as proposed to
     be conducted. Other than as set forth in Schedule 4.01(b) hereto, no Person
     other than the Borrower has any rights to acquire any capital stock or
     participations of any Operating Company Subsidiary or Intermediate Holding
     Company Subsidiary of the Borrower during the period when any Advances
     shall be outstanding.

          (c) Each Loan Party has full corporate power and authority to enter
     into, deliver and perform its obligations under this Agreement, the Notes
     and each other Loan Document to which it is or is to be a party and to
     consummate the transactions contemplated hereby and thereby, and has taken
     all necessary corporate action to authorize the execution, delivery and
     performance by it of this Agreement, the Notes and each other Loan
     Document.

          (d) The execution, delivery and performance by each Loan Party of this
     Agreement, the Notes and each other Loan Document to which it is or is to
     be a party and the consummation of the transactions contemplated hereby and
     thereby are within its corporate powers and shall not and will not (i)
     contravene (A) its organizational documents or (B) any law, rule,
     regulation or order or any contractual restriction binding on or affecting
     it or (ii) conflict with or result in a breach of, constitute a default
     under or result in the creation or imposition of any Lien (except for the
     Liens created pursuant to the Loan Documents) upon any of its property or
     assets or under any contract, loan agreement, indenture, mortgage, deed of
     trust, lease or other instrument to which it is a party or by which it is
     bound or to which the property or assets of it is subject, except where
     such contravention, conflict, breach, default or failure to comply would
     not have a Material Adverse Effect.

          (e) No Loan Party is in violation of any law, rule, regulation, order,
     writ, judgment, injunction, decree, determination or award or in breach of
     any contract, loan agreement, indenture, mortgage, deed of trust, lease or
     other instrument, the violation or breach of which is reasonably likely to
     have a Material Adverse Effect.
<PAGE>

                                       50

          (f) Except as otherwise described on Schedule 4.01 (f) as amended from
     time to time pursuant to Section 5.03 (u) no authorization or approval or
     other action by, and no notice to or filing with, any governmental
     authority or any other third party is required for (i) the due execution,
     delivery, recordation, filing or performance by any Loan Party of this
     Agreement, the Notes or any other Loan Document to which it is or is to be
     a party or for the consummation of the transactions contemplated hereby and
     thereby, (ii) the grant of the Liens granted by any Loan Party pursuant to
     this Agreement, the Security Agreements, the Blocked Account Letter
     Agreements and the Notes (including to the extent permitted by applicable
     law and subject to Permitted Liens and Shared Liens the first-priority
     nature thereof) other than Permitted Liens and Shared Liens and (iii) the
     exercise by the Administrative Agent, the Collateral Agent or any Lender of
     its rights under this Agreement, the Notes or any other Loan Document or of
     the remedies in respect of the collateral granted pursuant to the Security
     Agreements.

          (g) This Agreement, the Notes and each other Loan Document to which it
     is a party have been duly executed and delivered by the Borrower and, when
     executed and delivered hereunder, will constitute legal, valid and binding
     obligations of the Borrower and each of its Subsidiaries that is a party
     thereto, enforceable against the Borrower and such Subsidiaries in
     accordance with their respective terms except as such enforceability may be
     limited by (i) applicable bankruptcy, insolvency, liquidation, fraudulent
     conveyance, reorganization, concordato, moratorium or similar laws now or
     hereafter in effect affecting the enforcement of creditors' rights
     generally and (ii) general principles of equity (regardless of whether such
     enforceability is considered in a proceeding at law or in equity).

          (h) The balance sheet of the Borrower as at September 30, 1999 and the
     related statement of income and cash flows of the Borrower for the three
     month period then ended, copies of which have been furnished to each
     Lender, fairly present in all material respects (subject to year-end audit
     adjustments) the financial condition of the Borrower as at such date and
     the results of operations of the Borrower for the period ended on such
     date, all in accordance with generally accepted accounting principles
     applied on a consistent basis. The Consolidated forecasted balance sheets,
     income statements and cash flow statements of the Borrower and its
     Subsidiaries delivered to the Lenders in connection with the Project were
     prepared in good faith on the basis of the assumptions stated therein,
     which assumptions the Borrower believes were fair in the light of
     conditions existing at the time of delivery of such forecasts, and
     represented, at the time of delivery, the Borrower's best estimate of its
     future financial performance, it being understood that nothing set forth in
     such Consolidated forecasted balance sheets, income statements and cash
     flow statements shall be construed as a representation, warranty, covenant,
     undertaking, guaranty or assurance by the Borrower or any of its
     Subsidiaries as to the future financial or business performance of the
     Borrower and its
<PAGE>

                                       51

     Subsidiaries and that the forward-looking statements contained in such
     Consolidated forecasted balance sheets, income statements and cash flow
     statements involve known and unknown risks, contingencies, uncertainties
     and other factors that may cause the actual results, events or developments
     pertaining to the Borrower and its Subsidiaries to be materially and
     adversely different from any future results, events or developments
     contemplated, expressed or implied by such Consolidated forecasted balance
     sheets, income statements and cash flow statements. Since September 30,
     1999, there has been no Material Adverse Change.

          (i) No information, exhibit or report furnished in writing by (or on
     behalf of) the Borrower to the Administrative Agent, the Collateral Agent
     or any Lender in connection with the negotiation of the Loan Documents or
     pursuant to the terms of the Loan Documents contained at the time when
     furnished any untrue statement of material fact or omitted to state a
     material fact necessary to make the statements made therein (taken as a
     whole) not misleading.

          (j) Except as otherwise described on Schedule 3.01(a)(i), there is no
     pending or, to the best of the Borrower's knowledge, threatened action,
     suit, investigation, litigation or proceeding, including without limitation
     any Environmental Action, affecting the Borrower or any of its Subsidiaries
     before any court, governmental agency or arbitrator that (i) could be
     reasonably likely to have a Material Adverse Effect or (ii) purports to
     affect the legality, validity or enforceability of any Loan Document or the
     consummation of the transactions contemplated hereby or thereby, and there
     has been no material adverse change in the status, or financial effect on
     the Borrower or any of its Subsidiaries, of the Disclosed Litigation from
     that described on Schedule 3.01(a)(i) hereto.

          (k) The Borrower is not engaged in the business of extending credit
     for the purpose of purchasing or carrying Margin Stock, and no proceeds of
     any Advance will be used to purchase or carry any Margin Stock or to extend
     credit to others for the purpose of purchasing or carrying any Margin
     Stock.

          (l) The operations and properties of the Borrower and Subsidiaries
     comply in all material respects with all applicable Environmental Laws and
     Environmental Permits, except where the failure to be in such compliance
     could not reasonably be expected to have a Material Adverse Effect.

          (m) The Borrower and each of its Subsidiaries has filed, has caused to
     be filed or has been included in all tax returns (national, departmental,
     local, municipal and foreign) required to be filed and has paid or caused
     to be paid all taxes, assessments, fees and other charges shown thereon to
     be due, together with applicable interest and penalties, other than the
     payment of any taxes, assessment, fees or other charges (i) the
<PAGE>

                                       52

     nonpayment of which would not have a Material Adverse Effect or (ii) that
     are being contested in good faith and by proper proceedings and for which
     appropriate reserves are being maintained.

          (n) The obligations of the Borrower and each of its Subsidiaries under
     this Agreement, the Notes and each other Loan Document to which it is or is
     to be a party constitute direct, unconditional and unsubordinated
     obligations of the Borrower.

          (o) Set forth on Schedule 4.01(o) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all of the
     Liens created by, or otherwise existing on property of the Borrower and
     each of its Subsidiaries in favor of any other Person showing the parties
     listed as the secured parties thereunder, subject matter and term thereof,
     except for Liens created pursuant to the Loan Documents.

          (p) The Borrower and its Subsidiaries have valid and uncontested legal
     title to and are the beneficial owners of the Collateral and all of their
     respective other material properties and assets, free and clear of all
     Liens other than Permitted Liens and the Liens created pursuant to the Loan
     Documents.

          (q) The Borrower and each of its Subsidiaries is in compliance in all
     material respects with all applicable laws, ordinances, rules, regulations,
     and requirements of all governmental authorities (including without
     limitation certificates, permits, franchises and other governmental
     authorizations necessary to the ownership of its respective properties or
     to the conduct of its respective business, Environmental Laws and laws with
     respect to social security and pension fund obligations), except in each
     case to the extent where such failure to comply would not have a Material
     Adverse Effect.

          (r) Neither the Borrower nor any of its Subsidiaries is an "investment
     company", or an "affiliated person" of, or "promoter" or "principal
     underwriter" for, an "investment company", as such terms are defined in the
     Investment Company Act of 1940, as amended. Neither the making of any
     advance under this Agreement nor the application of the proceeds or
     repayment thereof by the Borrower, nor the consummation of the other
     transactions contemplated hereby, shall violate any provision of such Act
     or any rule, regulation or order thereunder.

          (s) The Borrower is, individually and together with its Subsidiaries,
     Solvent.

          (t) Set forth on Schedule 4.01(t) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all leases
     of real property (other than leases of cell sites) under which the Borrower
     or any of its Subsidiaries is the lessee, showing the street address,
     county or other relevant jurisdiction, state, lessor, lessee, expiration
     date and annual rental cost thereof.
<PAGE>

                                       53

          (u) Neither the Borrower nor any of its Subsidiaries has any patents,
     trademarks, trade names, service marks or copyrights that are material to
     the conduct of its business.

          (v) Set forth on Schedule 4.01(v) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of (i) all
     Existing Debt in excess of $250,000 showing the principal amount
     outstanding thereunder and (ii) the total aggregate amount of all Existing
     Debt equal to or less than $100,000.

          (w) Set forth on Schedule 4.01(w) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     Investments in excess of $100,000 held by the Borrower or any of its
     Subsidiaries, showing the amount, obligor or issuer and maturity, if any,
     thereof.

          (x) Set forth on Schedule 4.01(x) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     Material Contracts of the Borrower and its Subsidiaries, showing the
     parties thereto. Each such Material Contract has been duly authorized,
     executed and delivered by the Borrower or its Subsidiary, as the case may
     be, is in full force and effect and is binding upon and enforceable against
     the Borrower or its Subsidiary, as the case may be, in accordance with its
     terms except as such enforceability may be limited by (i) applicable
     bankruptcy, insolvency, liquidation, fraudulent conveyance, reorganization,
     concordato, moratorium or similar laws now or hereafter in effect affecting
     the enforcement of creditors' rights generally, and (ii) general principles
     of equity (regardless of whether such enforceability is considered in a
     proceeding at law or in equity), and there exists no default under any
     Material Contract by the Borrower or its Subsidiaries, as the case may be,
     which default could reasonably be expected to have a Material Adverse
     Effect.

          (y) Set forth on Schedule 4.01(y) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     licenses and spectrum rights (other than licenses relating to general
     business activities and the ownership and use of property applicable to
     persons generally and not specifically required to engage in business of
     the type proposed to be conducted by the Borrower and its Subsidiaries)
     providing for the right to operate the Networks in the Territory.

          (z) Set forth on Schedule 4.01(z) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     insurance policies naming the Lenders and the other Secured Creditors as
     loss payees thereunder. The amounts of such insurance and the risks covered
     thereby are the same as those provided for in the insurance policies
     usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Borrower or such
<PAGE>

                                       54

     Subsidiary operates and such insurance is sufficient to cover the risks
     associated with the conduct of the Borrower's or such Subsidiary's business
     and the Project.

          (aa) The activities of the Borrower's Subsidiaries contemplated by the
     Project and this Agreement are commercial in nature rather than
     governmental or public. The Borrower's Subsidiaries are not entitled to any
     right of immunity on the grounds of sovereignty with respect to such
     activities in any legal action or proceeding to enforce, or collect upon,
     or otherwise arising out of or relating to this Agreement, any of the other
     Loan Documents or Material Contracts.

          (bb) As of the date hereof, there is no tax, levy, impost, deduction,
     charge or withholding imposed, levied or made by or in any Core Territory
     or New York or any political subdivision or taxing authority thereof or
     therein (i) on or by virtue of the execution, delivery, performance,
     enforcement or admissibility into evidence of this Agreement or any of the
     other Loan Documents or (ii) on any payment to be made by the Borrower's
     Subsidiaries pursuant to this Agreement or any of the other Loan Documents,
     except that (A) all payments made under a Guaranty granted by the Operating
     Subsidiary that is a resident of Brazil will be subject to withholding
     income tax at the rate of 15% (or 25% in case of payments made to a Person
     that is a resident of a country that does not tax income or taxes it at a
     maximum rate of 20%) or such lower rate as provided in an applicable tax
     treaty between Brazil and another country, and pursuant to Brazilian tax
     laws, a Brazilian Loan Party may pay such additional amounts as will result
     in receipt by the applicable payee of such amounts as would have been
     received by them had no such withholding been required; (B) (i) any
     interest payments made by an Argentine Loan Party may be subject to
     Argentine withholding tax at the current rate of 35%; (ii) a court tax of
     up to 3% of the amount in controversy imposed with respect to the
     institution of any judicial proceeding to enforce any claim in the City of
     Buenos Aires or in any other jurisdiction in Argentina; and (iii) each
     Chattel Mortgage registered pursuant to the Master Chattel Mortgage
     Agreement will be subject to registration fee of 0.2% of the amount secured
     by such Chattel Mortgage (in the case of the Province of Buenos Aires), and
     to a stamp tax at a rate of 1.0% (subject to the provisions of the Fiscal
     Code of the Province of Buenos Aires) on the amount secured (in the case of
     the Province of Buenos Aires); (C) in the case of Colombia, the value of
     the foreclosure in any auction in Colombia is subject to a 3% tax and the
     payments made by the Colombian Operating Subsidiary to any Colombian
     trustee appointed under the Loan Documents may be subject to a tax; (D) in
     the case of Panama, (i) interest and other financial commissions and
     charges payable under the Credit Agreement allocated to the value of the
     credits assigned for the Panama operation would be subject to withholding
     tax at a 6% rate provided such payments were made from Panama and (ii)
     documentary taxes of US$1.00 per US$1000.00 of face value would be payable
     on the Credit Agreement and the Security Agreements at the time of
     enforcement in a Panama court should this take place; and (E) in the case
     of Peru, payments of interest, fees, commissions and other expenses
<PAGE>

                                       55

     made by the Borrower under any Loan Document to Persons (excluding
     individuals) domiciled outside of Peru are subject to (1) Peruvian income
     withholding tax, at the current rate of 1%, so long as (x) the interest
     rate borne by the loans under the Loan Documents does not exceed LIBOR plus
     7% or the Prime Rate plus 6%, (y) there is no economic link between the
     Borrower and the Lenders to whom such interest is paid and (z) the
     proceeds, if in cash, of the loans under the Loan Documents are received in
     Peru by the Borrower and (2) Peruvian value added tax (VAT) at a rate of
     18%, solely to the extent such amounts are paid to non-banking,
     non-financial or non-credit institutions. With respect to Peru, (I) any
     portion of the interest rates applying to the loans under the Loan
     Documents that exceeds the rates specified in clause (ii)(E)(1)(x) above
     will be subject to taxation at a 30% income tax withholding rate; (II) if
     the conditions specified in clause (ii)(E)(1)(y) or (z) are not satisfied,
     interest on the relevant loans under the Loan Documents will be subject to
     taxation at a 30% income tax withholding rate (for this purpose, all
     expenses and commissions, premiums and any other sum payable in addition to
     interest agreed upon that are paid to a foreign beneficiary will also be
     considered as interest).

          (cc) (intentionally omitted)

          (dd) Set forth on Schedule 4.01(dd) hereto, as amended from time to
     time pursuant to Section 5.03(u), is a complete and accurate list of all
     Plans, Multiemployer Plans and Welfare Plans.

          (ee) No ERISA Event has occurred or is reasonably expected to occur
     with respect to any Plan that, when taken together with all other ERISA
     Events that are reasonably expected to occur with respect to any Plan,
     could reasonably be expected to have a Material Adverse Effect.

          (ff) Schedule B (Actuarial Information) to the most recent annual
     report (Form 5500 Series) for each Plan, copies of which have been filed
     with the Internal Revenue Service and furnished to the Lender Parties, is
     complete and accurate and fairly presents the funding status of such Plan,
     and since the date of such Schedule B there has been no material adverse
     change in such funding status.

          (gg) Neither any Loan Party nor any ERISA Affiliate has incurred or is
     reasonably expected to incur any Withdrawal Liability exceeding U.S.$50,000
     to any Multiemployer Plan.

          (hh) Neither any Loan Party nor any ERISA Affiliate has been notified
     by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
     reorganization or has been terminated, within the meaning of Title IV of
     ERISA, and no such Multiemployer
<PAGE>

                                       56

     Plan is reasonably expected to be in reorganization or to be terminated,
     within the meaning of Title IV of ERISA.

          (ii) Set forth on Schedule 4.01(ii) hereto, as amended from time to
     time pursuant to Section 5.03(u), is a complete and accurate list of all
     Licenses with respect to the ownership and operation of digital wireless
     local loop data networks constituting a portion of a Network in each of the
     Core Territories as well as any other part of the Territory that are
     necessary for the Borrower to fulfill the financial and operational
     projections set forth in the Borrower's business plan dated October 29,
     1999, including all Licenses with respect to rights to use spectrum in the
     15 GHz, 18 GHz, 23 GHz and 38 GHz bands.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

     SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower shall:

          (a) Compliance with Laws, Etc. Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with Environmental Laws, except when contested in
     good faith by appropriate proceedings and for which an adequate reserve has
     been established or where non-compliance could not reasonably be expected
     to have a Material Adverse Effect.

          (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all taxes, assessments and governmental charges or levies imposed upon
     it or upon its property and (ii) all lawful claims that, if unpaid, might
     by law become a Lien upon its property; provided that neither the Borrower
     nor any of its Subsidiaries shall be required to pay or discharge any such
     tax, assessment, charge, levy or claim that is being contested in good
     faith and by proper proceedings and as to which appropriate reserves are
     being maintained, unless and until any Lien resulting therefrom attaches to
     its property and becomes enforceable against its other creditors, or where
     non-payment could reasonably be expected to have a Material Adverse Effect.

          (c) Compliance with Environmental Laws. Comply, and cause each of its
     Subsidiaries and all lessees and other Persons occupying its properties to
     comply, in all material respects, with all Environmental Laws and
     Environmental Permits applicable to its operations and properties except
     where noncompliance could not reasonably be expected to have a Material
     Adverse Effect; obtain and renew, and cause each of its
<PAGE>

                                       57

     Subsidiaries to obtain and renew, all Environmental Permits necessary for
     its operations and properties except where the failure to do so could not
     reasonably be expected to have a Material Adverse Effect.

          (d) Maintenance of Insurance. Cause each Operating Subsidiary to
     maintain property and third-party liability insurance providing for the
     designation of the Collateral Agent as loss payee thereunder with reputable
     and internationally recognized insurance companies or associations in such
     amounts and covering such risks as is usually carried by companies engaged
     in similar businesses and owning similar properties in the same general
     areas in which such Operating Subsidiary operates, subject to the
     availability of such insurance on reasonable terms in the commercial
     insurance market.

          (e) Preservation of Existence, Etc. Preserve and maintain, and cause
     each of its Subsidiaries to preserve and maintain, its corporate existence
     and its rights (contractual and statutory) with respect to the Networks;
     provided that the Borrower and its Subsidiaries may consummate any merger
     or consolidation permitted under Section 5.02 (c); and provided further
     that neither the Borrower nor any of its Subsidiaries shall be required to
     preserve any right or franchise if the Board of Directors or the General
     Assembly of Partners, as the case may be, of the Borrower or such
     Subsidiary shall determine that the preservation thereof is no longer
     desirable in the conduct of the business of the Borrower or such
     Subsidiary, as the case may be, and that the loss thereof could not
     reasonably be expected to have a Material Adverse Effect.

          (f) Visitation Rights. At any reasonable time and from time to time
     upon reasonable advance notice, permit the Administrative Agent, the
     Collateral Agent or any of the Lenders or any agents or representatives
     thereof, to examine and make copies of and abstracts from the records and
     books of account of, and visit the properties of, the Borrower and any of
     its Subsidiaries, and to discuss the affairs, finances and accounts of the
     Borrower and any of its Subsidiaries with any of their officers or
     directors and with their independent certified public accountants (at which
     discussions representatives of the Borrower may be present if Borrower so
     desires).

          (g) Keeping of Books. Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Borrower and each such Subsidiary in accordance with GAAP, in each case
     to the extent necessary to enable the Borrower to comply with the periodic
     reporting requirements of this Agreement.

          (h) Maintenance of Properties, Etc. Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear and obsolescence excepted, and
     not commit or suffer any waste with respect to any of its
<PAGE>

                                       58

     respective properties except where the failure to do so could not
     reasonably be expected to have a Material Adverse Effect.

          (i) Compliance with Terms of Leaseholds. (i) Make all payments and
     otherwise perform all obligations in respect of all leases of real property
     to which it is a party, keep such leases in full force and effect and use
     commercially reasonable efforts to not allow such leases to lapse or to be
     terminated or any rights to renew such leases to be forfeited or canceled,
     notify the Administrative Agent and the Collateral Agent of any default by
     any party with respect to such leases and cooperate with the Administrative
     Agent and the Collateral Agent in all respects to cure any such default,
     and cause each of its Subsidiaries to do so except where the failure to do
     so could not, individually or cumulatively, reasonably be expected to have
     a Material Adverse Effect and (ii) request, and cause each Operating
     Subsidiary to request, that any landlord, mortgagee or easement grantor of
     such Operating Subsidiary give the Collateral Agent and the Administrative
     Agent, on a best-efforts basis, notice of any default on the part of the
     applicable Operating Subsidiary under any agreement with such Operating
     Subsidiary and allow the Collateral Agent and its agents to inspect and
     remove Collateral after the occurrence and during the continuance of an
     Event of Default.

          (j) Performance of Material Contracts. Except where the failure to do
     so could not reasonably be expected to have a Material Adverse Effect,
     perform and observe in all material respects all the terms and provisions
     of each Material Contract to be performed or observed by it, maintain each
     such Material Contract in full force and effect and enforce each such
     Material Contract in accordance with its terms. For the purposes of this
     Agreement, a voluntary termination or suspension of a Material Contract by
     the Borrower in accordance with the terms and conditions thereof shall be
     deemed to not have a Material Adverse Effect.

          (k) New Operating Subsidiaries and Intermediate Holding Company
     Subsidiaries. Upon the creation of any Operating Subsidiary or Intermediate
     Holding Company Subsidiary not in existence on the date hereof or upon an
     Insignificant Subsidiary's becoming an Operating Subsidiary or an
     Intermediate Holding Company Subsidiary, the Borrower will at its expense:

               (i) cause such Subsidiary to duly execute and deliver to the
          Administrative Agent and the Collateral Agent a Guaranty substantially
          in the form of Exhibit D-2 (for Intermediate Holding Company
          Subsidiaries) or D-1 (for Operating Subsidiaries);

               (ii) cause such Subsidiary to duly execute and deliver to the
          Administrative Agent and the Collateral Agent an Operating Subsidiary
          Security Agreement or Intermediate Holding Company Security Agreement,
          as applicable
<PAGE>

                                       59

          (with such changes thereto as the Administrative Agent may reasonably
          request) and such other mortgages, pledges, assignments and other
          security agreements, in form and substance reasonably satisfactory to
          the Agents, securing payment of all of the obligations of such
          Subsidiary under the Guaranty and the obligations of the Loan Parties
          under this Agreement and constituting Liens on all Collateral
          described therein; and pledge, or cause to be pledged, to the
          Collateral Agent on behalf of the Secured Parties, all authorized,
          issued and outstanding capital stock or capital contributions of such
          Subsidiary; and execute and/or deliver to the Administration Agent
          each other document or instrument required to be delivered in
          connection with the execution and delivery of such Operating Security
          Agreement or Intermediate Holding Company Security Agreement;

               (iii) deliver to the Administrative Agent a signed copy of
          favorable opinions, addressed to the Agents and the Lenders, of
          counsel for the Borrower reasonably acceptable to the Administrative
          Agent as to such matters relating to such Operating Subsidiary as
          either Agent may reasonably request;

               (iv) deliver to the Administrative Agent a copy of a
          process-agent letter for such Subsidiary if it is organized in a
          jurisdiction outside the United States; and

               (v) at any time and from time to time, promptly execute and
          deliver any and all further instruments and documents and take all
          such other action as either Agent may deem desirable in obtaining the
          full benefits of or in preserving the Liens of each Security Agreement
          delivered pursuant to this Section 5.01(k) and mortgages and other
          agreements and instruments entered into by such Operating Subsidiary.

          (l) Obtain and Maintain Licenses and Permits. Obtain, maintain and
     comply and cause each of its Subsidiaries to obtain, maintain and comply
     with all licenses, permits, approvals or consents and the Licenses and the
     Regulatory Permits required to conduct the Borrower's and its Subsidiaries
     business in the Territory and make all payments when due of all amounts
     owing in respect of the Licenses and any spectrum clearances except (with
     respect to Licenses other than Material Licenses) where the failure to do
     so could not reasonably be expected to have a Material Adverse Effect.

          (m) Maintain Governmental Approvals. Obtain and maintain, and cause
     each of its Subsidiaries to obtain and maintain, in full force and effect
     all governmental approvals that may be required for the validity or
     enforceability of this Agreement, the Notes, each other Loan Document, and
     any other agreement entered into in connection with the transactions
     contemplated hereby and thereby.
<PAGE>

                                       60

          (n) No Transfer of Licenses. Maintain or cause its Subsidiaries to
     maintain the Licenses and refrain from transferring any such Licenses to a
     third party without prior written approval of the Lenders, except (with
     respect to Licenses other than Material Licenses) where the failure to do
     so could not reasonably be expected to have a material adverse effect on
     the ability of the Borrower to perform its payment obligations under the
     Loan Documents.

          (o) Syndication Matters. At the Borrower's expense, (i) promptly and
     in any event within 30 days after being requested to do so by the Initial
     Lender, prepare an information memorandum reasonably satisfactory to the
     Initial Lender in form and scope customary for information memoranda
     prepared for loan syndications of similar borrowers, thereafter upon
     reasonable notice from the Initial Lender provide reasonable updates of the
     information contained in such information memorandum and at the time of
     delivery of such update cause such information memorandum not to contain
     any untrue statement of material fact or omit to state a material fact
     necessary to make the statements made therein not misleading during such
     period, (ii) make senior managers of the Borrower and its Subsidiaries
     reasonably available at meetings with prospective lenders in connection
     with the syndication of this Agreement, (iii) do such other acts and things
     as the Lender may reasonably request that are customary in connection with
     the syndication of credit agreements in order successfully to syndicate
     this Agreement and (iv) at the Lenders' expense, cooperate, and cause the
     Borrower to cooperate, with the Lenders in obtaining political risk
     insurance.

          (p) Consularization, Etc. At the Borrower's expense, take such actions
     with respect to any Loan Document as may by necessary or appropriate or
     reasonably requested by any Agent or Lender in any jurisdiction where any
     Loan Party is located in order to ensure the validity or enforceability of
     the Loan Documents against the Loan Parties in such jurisdictions,
     including without limitation the consularization of the Loan Documents
     where the laws of the relevant Core Territory may so require.

          (q) Additional Collateral. To the extent the cost of creating,
     perfecting and maintaining a Lien on any such Collateral does not,
     individually or in the aggregate, exceed the value of any recovery proceeds
     reasonably expected to be obtained by the Collateral Agent in connection
     with the enforcement of such Lien against such Collateral, within 30 days
     after delivering the report required pursuant to Section 5.03(t) with
     respect to additional Collateral, cause such relevant Operating Subsidiary,
     at its expense, to assign and pledge to the Collateral Agent for the
     benefit of the Secured Creditors the property described in such report,
     except such property encumbered by Liens permitted pursuant to Section
     5.02(b)(vi), pursuant to Security Agreements and other instruments
     satisfactory in form and substance to the Collateral Agent; and will cause
     such Operating Subsidiary to make such registrations and filings, and do
     such other or further acts and things as may be necessary to perfect the
     Lien of the Collateral Agent in respect of such
<PAGE>

                                       61

     property. The Borrower or such Subsidiary, as the case may be, shall not be
     required to assign or pledge any such property if such assignment or pledge
     is not permitted under any applicable laws.

     SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will not:

          (a) Indebtedness. Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Debt, other than:

               (i) Debt owing hereunder and Existing Debt,

               (ii) Debt created under Hedge Agreements entered into by the
          Borrower,

               (iii) Debt of any Person that becomes a Subsidiary of the
          Borrower after the date hereof in accordance with the terms of Section
          5.02(k)(i) which Debt is existing at the time such Person becomes a
          Subsidiary of the Borrower (other than Debt incurred solely in
          contemplation of such Person becoming a Subsidiary of the Borrower),

               (iv) Subordinated Debt,

               (v) Debt of the Borrower to any of its Subsidiaries, or of a
          Subsidiary to the Borrower or to a Subsidiary of the Borrower;
          provided that such Debt shall have been pledged to the Collateral
          Agent,

               (vi) Debt incurred in connection with the entering into by the
          Borrower or a Subsidiary thereof of Capitalized Leases in aggregate
          principal amount (including any such Debt incurred to refinance such
          Debt, as permitted by clause (xii) below) at any one time outstanding
          not exceeding (A) $50,000,000, with respect to any indefeasible rights
          of use of fiber and (B) $10,000,000, with respect to Capitalized
          Leases other than indefeasible rights of use of fiber,

               (vii) Secured Debt for the purpose of financing working-capital
          requirements of the Borrower and its Subsidiaries in an aggregate
          principal amount (including any such Debt incurred to refinance such
          Debt, as permitted by clause (xii) below) at any time outstanding not
          exceeding 10% of Contributed Capital at such time; provided that upon
          the incurrence of such Debt the creditors thereof shall become parties
          to the Intercreditor Agreement,
<PAGE>

                                       62

               (viii) Secured Debt (including Debt under the Ericsson Credit
          Agreement) incurred for the purchase price of property or services to
          be used for the conduct of the Borrower's or any of its Subsidiary's
          business; provided that, immediately upon incurrence of such Debt, the
          Borrower shall be in compliance with the terms of Sections 5.04(d),
          (e), (f) and (g) and provided further that upon the incurrence of
          Secured Debt pursuant to this clause, the creditors thereof shall
          become parties to the Intercreditor Agreement,

               (ix) Intercompany Mirror Subordinated Debt,

               (x) Debt incurred to finance the purchase price of equipment or
          other property ancillary to the Borrower's business and secured by
          Liens permitted under Section 5.02(b)(vi), in an aggregate principal
          amount (including any such Debt incurred to refinance such Debt, as
          permitted by clause (xii) below) at any time outstanding not exceeding
          1% of Contributed Capital at such time,

               (xi) Debt in the form of Back-to-Back Loans, and

               (xii) Debt incurred in connection with the refinancing of any
          Debt which may be incurred under clauses (i) through (xi) above;
          provided that (A) such Debt does not exceed the amount of Debt being
          refinanced, (B) in the case of the refinancing of any Subordinated
          Debt, any such Debt shall also be subordinated on substantially the
          same terms and (C) in the case of Intercompany Mirror Subordinated
          Debt, such Debt still qualifies as Intercompany Mirror Subordinated
          Debt;

     provided that at the time of incurrence of any of the Debt referred to in
     clauses (i) to (ix) above, and immediately after giving effect thereto, no
     event has occurred and is continuing that constitutes a Default.

          (b) Liens, Etc. Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties, whether now owned or
     hereafter acquired, or assign, or permit any of its Subsidiaries to assign,
     any right to receive income, other than

               (i) Liens created under the Loan Documents,

               (ii) Permitted Liens,

               (iii) Shared Liens,
<PAGE>

                                       63

               (iv) Liens existing on the date hereof and described on Schedule
          4.01(o) hereto,

               (v) Liens arising in connection with Capitalized Leases permitted
          under Section 5.02(a)(vi); provided that no such Lien shall extend to
          or cover any Collateral or assets other than the assets subject to
          such Capitalized Leases,

               (vi) purchase money Liens to secure Debt incurred in accordance
          with Section 5.02(a)(x); provided that no such Lien shall extend to or
          cover any property other than the property being acquired, and no
          extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced,

               (vii) Liens arising in connection with the lease or transfer of
          Customer Premise Equipment permitted under Section 5.02(j)(vi),

               (viii) Liens on Blocked Accounts created under the Blocked
          Account Letter Agreements (as each term is defined both herein and in
          the Ericsson Credit Agreement), and

               (ix) the replacement, extension or renewal of any Lien permitted
          by clauses (iii) through (viii) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount or change in any direct or contingent
          obligor) of the Debt secured thereby.

          (c) Mergers, Etc. Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that (i) any Subsidiary of the Borrower may merge into or
     consolidate with any other Subsidiary of the Borrower so long as the Person
     formed by such merger or consolidation is a Subsidiary of the Borrower,
     (ii) any of the Borrower's Subsidiaries may merge into the Borrower so long
     as the Borrower is the surviving corporation and (iii) the Borrower or any
     of its Subsidiaries may merge with any other Person so long as, in the case
     of any such merger to which the Borrower is a party, the Borrower is the
     surviving corporation and, in the case of any such merger to which a
     Subsidiary of the Borrower is a party, such Subsidiary is the surviving
     corporation; provided that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (d) Changes in Fiscal Year. Make or permit any change in its fiscal
     year or permit any of its Subsidiaries to make or permit any change in its
     fiscal year.

          (e) Transactions with Affiliates. Either (i) enter into or permit any
     Subsidiary to enter into any agreement or arrangement with any Affiliate of
     the Borrower if such
<PAGE>

                                       64

     agreement or arrangement contains pricing and terms that provide to such
     Affiliate fees, profits, premiums or terms materially in excess of or
     materially more favorable than the fees, profits, premiums or terms that
     the Borrower or a Subsidiary thereof could reasonably be expected to pay or
     provide to a third party in connection with a similar transaction, other
     than agreements providing for management fees payable by an Operating
     Subsidiary to the Borrower or (ii) without limiting the foregoing, enter
     into or permit any Subsidiary to enter into any tax-sharing agreement or
     arrangement with the Parent or any other Person pursuant to which the
     Borrower and its Subsidiaries will make any payments or agree to make any
     payments in lieu of income taxes unless the cumulative sum of such payments
     does not exceed to any material extent the cumulative sum of income taxes
     that the Borrower and its Subsidiaries would have paid if the Borrower and
     its Subsidiaries had always filed income tax returns on a consolidated
     basis as a separate affiliated group (as such term is defined in section
     1504(a) of the Internal Revenue Code of 1986) of corporations consisting of
     only the Borrower and its Subsidiaries.

          (f) Other Business. Engage or permit any Subsidiary to engage,
     directly or indirectly, in any business other than the offering of data,
     voice or video services, whether as a competitive access provider, a
     competitive local exchange carrier or an Internet access provider other
     than in the Territory.

          (g) Modification of Organizational Documents. Modify or permit any
     Subsidiary to modify its organizational documents in a manner that affects
     materially and adversely the fulfillment of its or such Subsidiary's
     obligations under any Loan Document to which it or such Subsidiary is a
     party or changes in any material respect the nature of its or such
     Subsidiary's business, its accounting policies or reporting practices.

          (h) Amendment; Etc. of Material Contracts. Cancel or terminate any
     Material Contract or consent to or accept any cancellation or termination
     thereof, amend or otherwise modify any Material Contract or give any
     consent, waiver or approval thereunder, waive any default under or any
     breach of any Material Contract or agree in any manner to any other
     amendment, modification or change of any term or condition of any Material
     Contract if any of such actions could reasonably be expected to result in a
     Material Adverse Effect or take any other action in connection with any
     Material Contract that would impair the value of the interest or rights of
     the Borrower thereunder or that would impair the interest or rights of the
     Administrative Agent or any Lender thereunder, or permit any of its
     Subsidiaries to do any of the foregoing if any of such actions could
     reasonably be expected to result in a Material Adverse Effect.

          (i) Negative Pledge. Enter into or suffer to exist, or permit any of
     its Subsidiaries to enter into or suffer to exist, any agreement
     prohibiting or conditioning the creation or assumption of any Lien upon any
     of its property or assets except (i) in favor of
<PAGE>

                                       65

     the Secured Creditors or (ii) in connection with (A) any Capitalized Lease
     permitted by Section 5.02(a)(vi) solely to the extent that such Capitalized
     Lease prohibits a Lien on the property subject thereto or (B) any Debt
     outstanding on the date any Subsidiary of the Borrower becomes such a
     Subsidiary (so long as such agreement was not entered into solely in
     contemplation of such Subsidiary becoming a Subsidiary of the Borrower).

          (j) Sales of Assets. Sell, lease, transfer, liquidate, wind up or
     otherwise dispose of, or permit any of its Subsidiaries to sell, lease,
     transfer, liquidate, wind up or otherwise dispose of, any Collateral or any
     substantial part of its assets other than Collateral, including without
     limitation substantially all assets constituting the business of a
     division, branch or other unit operation, or grant any option or other
     right to purchase, lease or otherwise acquire any Collateral other than
     inventory to be sold in the ordinary course of its business, except:

               (i) sales and disposal of inventory in the ordinary course of
          business,

               (ii) in a transaction authorized by subsection (c) of this
          Section 5.02,

               (iii) sales of Material Assets for cash and for fair value in an
          aggregate amount not to exceed $10,000,000 in any fiscal year, the Net
          Cash Proceeds of which are applied in accordance with Section 2.08(b),

               (iv) the limited recourse sale of accounts receivable in
          connection with the securitization thereof, which sale is non-recourse
          to the extent customary in securitizations, the Net Cash Proceeds of
          which are applied in accordance with Section 2.08(b),

               (v) sales and disposal of obsolete equipment in the ordinary
          course of business,

               (vi) sales, leases and transfers of Customer Premise Equipment in
          the ordinary course of business, and

               (vii) sales of other assets for cash and for fair value in an
          aggregate amount not to exceed $2,500,000 in any fiscal year.

          (k) Investments in Other Persons. Make or hold, or permit any of its
     Subsidiaries to make or hold, any Investment in any Person other than:

               (i) Investments by the Borrower and its Subsidiaries in their
          Insignificant Subsidiaries, Operating Subsidiaries and Intermediate
          Holding Company Subsidiaries outstanding on the date hereof and
          additional investments
<PAGE>

                                       66

          in Insignificant Subsidiaries, Operating Subsidiaries and Intermediate
          Holding Company Subsidiaries engaged in businesses permitted under
          Section 5.02(f) in the Core Territories; provided that:

                    (A) the Borrower shall have complied with the provisions set
               forth in Section 5.01(k),

                    (B) each Operating Subsidiary shall be a Wholly Owned
               Subsidiary of the Borrower or an Intermediate Holding Company
               Subsidiary,

                    (C) in the case of any such Subsidiary created after the
               date hereof, such Subsidiary shall be a Wholly Owned Subsidiary,

                    (D) in the case of any Intermediate Holding Company
               Subsidiary in existence on the date hereof, the Borrower shall
               directly hold 100% of each class and series of Equity Interests
               of such Subsidiary;

               (ii) loans and advances to employees in the ordinary course of
          the business of the Borrower and its Subsidiaries as presently
          conducted in an aggregate principal amount not to exceed $250,000, at
          any time outstanding;

               (iii) Investments by

                    (A) the Operating Subsidiaries in Cash Equivalents in an
               aggregate amount not to exceed $20,000,000 at any one time
               outstanding, and

                    (B) any Intermediate Holding Company Subsidiary in Cash
               Equivalents in an aggregate amount not to exceed $5,000,000 at
               any one time outstanding; provided that no Intermediate Holding
               Company Subsidiary shall maintain any such Investment for more
               than five Business Days;

               (iv) Investments existing on the date hereof and described on
          Schedule 4.01(w) hereto;

               (v) Investments by the Borrower in Hedge Agreements permitted
          under Section 5.02(a)(ii); provided that the transactions contemplated
          by such agreements do not violate the provisions of Section 5.02(t);
<PAGE>

                                       67

               (vi) Investments consisting of intercompany Debt permitted under
          Section 5.02(a)(v);

               (vii) Investments by the Borrower or an Intermediate Holding
          Company Subsidiary in Back-to-Back Loans; and

               (viii) Investments by the Borrower and its Subsidiaries in the
          capital stock of:

                    (A) Subsidiaries engaged in businesses permitted under
               Section 5.02(f) in any country other than any Core Territory in
               an aggregate amount invested not to exceed $25,000,000 at any
               time outstanding and as to which the Borrower shall have complied
               with its obligations under Section 5.01(k), and

                    (B) Companies engaged in businesses permitted under Section
               5.02(f) (I) in any Core Territory, in an aggregate not to exceed
               $35,000,000 in any calendar year or (II) in the Territory other
               than in any Core Territory in an aggregate not to exceed
               $15,000,000 amount at any time outstanding; provided that in each
               case any capital stock so acquired shall have been pledged to the
               Collateral Agent for the benefit of the Lenders within 30 days
               after such acquisition pursuant to security agreements and other
               instruments reasonably satisfactory in form and substance to the
               Required Lenders and the Person making such Investments shall
               have taken such other action with respect to such collateral
               security as would be required under Section 5.01(k) with respect
               to collateral security if such Person were a newly created
               Subsidiary of the Borrower.

          (l) Restricted Payments. Declare or pay or make any Restricted Payment
     or permit any of its Subsidiaries to make any Restricted Payment, except
     that the Borrower may

               (i) make scheduled payments of interest in respect of
          Intercompany Mirror Subordinated Debt at any time after December 31,
          2001, so long as no Default has occurred and is continuing at the time
          of or after giving effect to any such payment; and

               (ii) make a cash distribution to the Parent in respect of tax
          obligations of the Parent due in respect of (I) the existence of the
          Parent or (II) the activities of the Borrower or any of its
          Subsidiaries, but in either case only to the extent that
<PAGE>

                                       68

          such distribution would be permitted under tax-sharing agreements or
          arrangements permitted under Section 5.02(e).

          (m) Prepayments of Debt. Prepay:

               (i) any Subordinated Debt and Intercompany Mirror Subordinated
          Debt, or

               (ii) any other Debt, other than Debt permitted under Section
          5.02(a)(vi), (x) or (xi), unless the Borrowings and such other Debt
          shall be ratably prepaid in accordance with the respective then
          outstanding aggregate principal amounts thereof.

          (n) Liquidation, Etc. of Business. Wind up, dissolve or liquidate the
     Borrower or any of its Subsidiaries except as permitted under Section
     5.01(e), or abandon its conduct of its business in the Territory.

          (o) Gross PP&E. Make or permit its Subsidiaries to make any Capital
     Expenditures that would cause the Gross PP&E of the Borrower and its
     Subsidiaries in any period set forth below to exceed the amount set forth
     below for such period.

<TABLE>
<CAPTION>
                Year Ending In                  Amount
                --------------                  ------
<S>                                          <C>
                    12/31/99                 $ 52,000,000
                    12/31/00                 $156,500,000
                    12/31/01                 $253,000,000
                    12/31/02                 $377,500,000
                    12/31/03                 $450,500,000
                    12/31/04                 $523,500,000
                    12/31/05                 $616,300,000
                    12/31/06                 $720,300,000
</TABLE>
<PAGE>

                                       69

          (p) Lease Obligations. Create, incur, assume or suffer to exist, or
     permit any of its Subsidiaries to create, incur, assume or suffer to exist:

               (i) any obligations as lessee for the rental or hire of real or
          personal property of any kind under leases or agreements to lease
          having a term of one year or more from the date of execution thereof
          (other than Capitalized Leases) that would cause the direct and
          contingent liabilities of it and its Subsidiaries, on a Consolidated
          basis, in respect of all such obligations in any period set forth
          below to exceed the amount set forth below for such period;

<TABLE>
<CAPTION>
                Year Ending In                  Amount
                --------------                  ------
<S>                                          <C>
                    12/31/99                 $ 7,500,000
                    12/31/00                 $12,500,000
                    12/31/01                 $17,500,000
                    12/31/02                 $22,500,000
                    12/31/03                 $27,500,000
                    12/31/04                 $47,500,000
                    12/31/05                 $57,500,000
                    12/31/06                 $72,500,000
</TABLE>

               or

               (ii) any obligations under Capitalized Leases that would cause
          the direct and contingent liabilities of it and its Subsidiaries, on a
          Consolidated basis, in respect of all such obligations to exceed at
          any time (A) $50,000,000, with respect to indefeasible rights of use
          of fiber and (B) $10,000,000, with respect to Capitalized Leases other
          than indefeasible rights of use of fiber.

          (q) Restrictions on Activities. Conduct any significant business other
     than holding Equity Interests of Intermediate Holding Company Subsidiaries
     and incurring liabilities and holding Investments permitted under this
     Agreement or permit any of its Intermediate Holding Company Subsidiaries
     to:

               (i) hold any assets that would cause them to fail to qualify as
          Intermediate Holding Company Subsidiaries,

               (ii) incur debt or other liabilities other than intercompany
          loans under Section 5.02(a)(v), and
<PAGE>

                                       70

               (iii) conduct any significant business other than holding the
          capital stock or contributions of, providing managerial oversight for
          and supporting and consolidating the corporate functions of, an
          Operating Subsidiary or Intermediate Holding Company Subsidiary.

          (r) Payment Restrictions Affecting Subsidiaries. Directly or
     indirectly, enter into or suffer to exist, or permit any of its
     Subsidiaries to enter into or suffer to exist, any agreement or arrangement
     limiting the ability of any of its Subsidiaries to declare or pay dividends
     or other distributions in respect of its Equity Interests or repay or
     prepay any Debt owed to, make loans or advances to, or otherwise transfer
     assets to or invest in, the Borrower or any Subsidiary of the Borrower
     (whether through a covenant restricting dividends, loans, asset transfers
     or investments, a financial covenant or otherwise), except the Loan
     Documents.

          (s) Partnerships, Etc. Become a general partner in any general or
     limited partnership or joint venture, or permit any of its Subsidiaries to
     do so.

          (t) Speculative Transactions. Engage, or permit any of its
     Subsidiaries to engage, in any transaction involving commodity options or
     futures contracts or any similar speculative transactions.

          (u) Issuance of Capital Stock or Contributions by Subsidiaries. Permit
     any of its Subsidiaries to issue any capital stock or contributions to any
     Person other than to the Borrower or a Wholly Owned Subsidiary of such
     Subsidiary, except pursuant to any agreement in effect and listed in the
     form of Schedule 5.02(u).

          (v) Speculative Build-Outs. Install or permit any of its Subsidiaries
     to install a portion of any Network intended to provide direct service to
     end-user customers (a "Tributary") in any building unless there is at least
     one bona fide significant customer using such Tributary in such building,
     except that for every 100 buildings in which such a Tributary is installed,
     a Tributary may be installed in one building for which there is not any
     such customer.

     SECTION 5.03. Reporting Requirements. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower shall
furnish to the Lenders:

          (a) as soon as available and in any event within 15 days after the end
     of each fiscal month of the Borrower, for a period of 12 months from the
     date hereof (i) internal summary financial and operating statements for
     such month, prepared by the Borrower's management for its chief executive
     officer and (ii) a memorandum or letter discussing such internal summary
     financial and operating statements and comparing such financial
<PAGE>

                                       71

     information to the pro forma financial information for such period set
     forth in the business plan delivered pursuant to Section 3.01(i)(ii);

          (b) as soon as available and in any event within 45 days after the end
     of each of the first three quarters of each fiscal year of the Borrower (i)
     internal summary financial and operating statements for such quarter,
     prepared by the Borrower's management for its chief executive officer and
     (ii) a memorandum or letter discussing such internal summary financial and
     operating statements and comparing such financial information to the pro
     forma financial information for such period set forth in the budget for
     such period delivered pursuant to Section 5.03(r);

          (c) as soon as available and in any event within 45 days after the end
     of each of the first three quarters of each fiscal year of the Borrower,
     Consolidated and consolidating balance sheets of the Borrower and its
     Subsidiaries as of the end of such quarter and Consolidated and
     consolidating statements of income and cash flows of the Borrower and its
     Subsidiaries for the period commencing at the end of the previous fiscal
     year and ending with the end of such quarter, and, with respect to the
     second fiscal quarter of any fiscal year of the Borrower, a certificate of
     the chief financial officer of the Borrower (a "Compliance Certificate")
     (i) duly certifying (subject to year-end adjustment audits) that such
     balance sheets and statements of income and cash flow have been prepared in
     accordance with GAAP and stating that, to the knowledge of such chief
     financial officer, no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Borrower has taken and proposes to take
     with respect thereto and (ii) attesting to the number of Voice Grade
     Equivalents as of the end of such fiscal quarter;

          (d) as soon as available and in any event within 120 days (or, after
     the consolidated group of companies of which the Borrower is part is
     subject to the reporting requirements of the Securities and Exchange Act of
     1934, 90 days) after the end of each fiscal year of the Borrower, a copy of
     the annual audit report for such year for the Borrower and its
     Subsidiaries, containing Consolidated and consolidating balance sheets of
     the Borrower and its Subsidiaries as of the end of such fiscal year and
     Consolidated and consolidating statements of income and cash flows of the
     Borrower and its Subsidiaries for such fiscal year, in each case
     accompanied by (i) an opinion acceptable to the Required Lenders from a
     firm of nationally recognized independent certified public accountants,
     together with (A) a certificate of such accounting firm to the Lenders
     stating that in the course of the regular audit of the business of the
     Borrower and its Subsidiaries, which audit was conducted by such accounting
     firm in accordance with GAAP, such accounting firm has obtained no
     knowledge that would cause them to believe that a Default has occurred and
     is continuing, or if, in the opinion of such accounting firm, a Default has
     occurred and is continuing, a statement as to the nature thereof and (B) a
     schedule in form satisfactory to the Administrative Agent of the
     computations used by
<PAGE>

                                       72

     such accountants in determining, as of the end of such fiscal year,
     compliance with the covenants contained in Section 5.04 and (ii) a
     certificate of the chief financial officer of the Borrower (A) stating that
     to his or her knowledge no Default has occurred and is continuing or, if a
     default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Borrower has taken and proposes to take
     with respect thereto and (B) attesting to the number of Voice Grade
     Equivalents as of the end of such fiscal year;

          (e) promptly upon the discovery of the occurrence or existence
     thereof, notice of (i) any Default under this Agreement, the Notes or the
     Security Agreements, along with a statement of the Chief Executive Officer
     or Chief Financial Officer of the Borrower setting forth the details of
     such Default and the action that the Borrower has taken and proposes to
     take with respect thereto, (ii) any event, development or circumstance
     which would cause the financial statements most recently furnished to the
     Lenders in accordance with Section 5.03(c) or (d) to fail in any material
     respect to fairly present, in accordance with GAAP, the financial condition
     and operating results of the Borrower and its Subsidiaries as of the date
     of such financial statements, and (iii) the occurrence of a Material
     Adverse Effect;

          (f) promptly after the commencement thereof, notice of all actions,
     suits, investigations, litigation and proceedings before any court or
     governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, affecting any Loan Party or any of
     its Subsidiaries of the type described in Section 3.01(a), and promptly
     after the occurrence thereof, notice of any adverse change in the status or
     the financial effect on any Loan Party or any of its Subsidiaries of the
     Disclosed Litigation from that described on Schedule 3.01(a)(i) hereto;

          (g) (i) promptly and in any event within 10 days after the Borrower or
     any ERISA Affiliate knows or has reason to know that any ERISA Event has
     occurred, a statement of the chief executive officer or chief financial
     officer of the Borrower describing such ERISA Event and the action, if any,
     that the Borrower or such ERISA Affiliate has taken and proposes to take
     with respect thereto and (ii) on the date any records, documents or other
     information must be furnished to the PBGC with respect to any Plan pursuant
     to Section 4010 of ERISA, a copy of such records, documents and
     information;

          (h) promptly and in any event within three Business Days after receipt
     thereof by the Borrower or any ERISA Affiliate, copies of each notice from
     the PBGC stating its intention to terminate any Plan or to have a trustee
     appointed to administer any Plan;

          (i) promptly and in any event within 30 days after the receipt thereof
     by the Borrower or any ERISA Affiliate, a copy of the annual actuarial
     report for each Plan the
<PAGE>

                                       73

     funded current liability percentage (as defined in Section 302(d)(8) of
     ERISA) of which is less than 90% or the unfunded current liability of which
     exceeds $1,000,000;

          (j) promptly and in any event within five Business Days after receipt
     thereof by the Borrower or any ERISA Affiliate from the sponsor of a
     Multiemployer Plan, copies of each notice concerning (i) the imposition of
     Withdrawal Liability by any such Multiemployer Plan, (ii) the
     reorganization or termination, within the meaning of Title IV of ERISA, of
     any such Multiemployer Plan or (iii) the amount of liability incurred, or
     that may be incurred, by the Borrower or any ERISA Affiliate in connection
     with any event described in clause (i) or (ii);

          (k) as soon as available and in any event not later than 60 days after
     the end of each fiscal year of the Borrower, an updated business plan of
     the Borrower approved by its Board of Directors, with respect at least to
     the period ending on the fifth anniversary of the Tranche A Effective Date,
     including projections and budgets and otherwise in substantially the form
     and scope of the business plan delivered pursuant to Section 3.01(i)(ii);

          (l) promptly after the sending or filing thereof, copies of all proxy
     statements, financial statements and reports that any Loan Party or any of
     its Subsidiaries sends to its stockholders or partners, and copies of all
     regular, periodic and special reports, and all registration statements,
     that any Loan Party or any of it Subsidiaries filed with the Securities and
     Exchange Commission or any governmental authority that may be substituted
     therefor, or with any national securities exchange;

          (m) promptly after the furnishing thereof, copies of any statement or
     report furnished to any holder of Debt securities of any Loan Party or of
     any of its Subsidiaries pursuant to the terms of any indenture, loan or
     creditor similar agreement and not otherwise required to be furnished to
     the Lender Parties pursuant to any other clause of this Section 5.03;

          (n) promptly upon receipt thereof, copies of all notices of default
     received by any Loan Party or any of its Subsidiaries under or pursuant to
     any License, Material Contract or instrument, indenture, loan or credit or
     similar agreement and, from time to time upon request by the Administrative
     Agent, such information and reports regarding the Licenses, the Material
     Contracts and such instruments, indentures and loan and credit and similar
     agreements as the Administrative Agent may reasonably request;

          (o) promptly after the assertion or occurrence thereof, notice of any
     Environmental Action against or of any noncompliance by any Loan Party or
     any of its Subsidiaries with any Environmental Law or Environmental Permit
     that could reasonably be expected to have a Material Adverse Effect;
<PAGE>

                                       74

          (p) promptly after the adoption by the Borrower or any of its
     Subsidiaries thereof, notice of any change in the accounting policies and
     reporting practices of such Borrower or Subsidiary;

          (q) promptly upon receipt thereof, any additional reports, management
     letters or other detailed information concerning significant aspects of
     Borrower's operations or financial affairs prepared by the Borrower's
     independent accounts and provided to the Board of Directors of the Borrower
     (and not otherwise contained in other materials provided hereunder);

          (r) at least 30 days but not more than 90 days prior to the beginning
     of each fiscal year, an annual budget prepared on a monthly basis for the
     Borrower for such fiscal year (displaying anticipated statements of income
     and cash flows and balance sheets) and any revisions of such annual or
     other budgets;

          (s) such other information respecting the Borrower or any of its
     Subsidiaries as any Lender through the Administrative Agent may from time
     to time reasonably request;

          (t) (i) for each Core Territory in which the Licenses are not subject
     to a perfected Lien in favor of the Collateral Agent, within 30 days after
     (A) the date falling 45 days after the beginning of each fiscal quarter and
     (B) the end of each fiscal quarter, and (ii) in each other Core Territory,
     within 30 days after the end of each fiscal quarter, a list of all real
     property with an aggregate value in excess of $50,000 and personal property
     with an aggregate value in excess of $10,000 in each case located in such
     Core Territory and including in each case, without limitation, all accounts
     receivable, assets acquired through capital expenditures and general
     intangibles, that have been acquired by the Borrower or any Subsidiary
     thereof and not included in any prior report under this Section 5.03(t) and
     as to which the Collateral Agent does not have a perfected Lien; and

          (u) as of the date of any Advance subsequent to the initial Advance,
     amended forms of Schedules 4.01(b), (f), (o), (t), (v), (w), (x), (y) (z),
     (dd) and (ii) to the extent necessary to make the representations and
     warranties relating to such amended Schedules true and correct as of such
     date.

     SECTION 5.04. Operational and Financial Covenants. So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower:

          (a) Revenue. Shall not permit its Revenue for the period beginning on
     the first day of the Borrower's fiscal year in which a date set forth below
     occurs and ending
<PAGE>

                                       75

     on such date to be less than the amount corresponding to such date under
     the heading "Revenue" set forth below:

<TABLE>
<CAPTION>
                    --------------------------------
                       Date                Revenue
                    --------------------------------
<S>                                       <C>
                    12/31/1999              $650,000
                    --------------------------------
                    03/31/2000              $305,000
                    --------------------------------
                    06/30/2000              $917,000
                    --------------------------------
                    09/30/2000            $3,050,000
                    --------------------------------
                    12/31/2000            $6,100,000
                    --------------------------------
                    03/31/2001            $3,350,000
                    --------------------------------
                    06/30/2001            $7,000,000
                    --------------------------------
                    09/30/2001           $15,800,000
                    --------------------------------
                    12/31/2001           $28,000,000
                    --------------------------------
                    03/31/2002           $17,000,000
                    --------------------------------
                    06/30/2002           $41,500,000
                    --------------------------------
                    09/30/2002           $74,000,000
                    --------------------------------
                    12/31/2002          $122,000,000
                    --------------------------------
                    03/31/2003           $50,000,000
                    --------------------------------
                    06/30/2003          $103,000,000
                    --------------------------------
                    09/30/2003          $165,000,000
                    --------------------------------
                    12/31/2003          $239,000,000
                    --------------------------------
                    03/31/2004           $80,800,000
                    --------------------------------
                    06/30/2004          $165,500,000
                    --------------------------------
                    09/30/2004          $265,500,000
                    --------------------------------
                    12/31/2004          $385,000,000
                    --------------------------------
                    03/31/2005          $125,000,000
                    --------------------------------
                    06/30/2005          $255,500,000
                    --------------------------------
                    09/30/2005          $397,500,000
                    --------------------------------
                    12/31/2005          $567,500,000
                    --------------------------------
                    03/31/2006          $179,000,000
                    --------------------------------
                    06/30/2006          $366,000,000
                    --------------------------------
                    09/30/2006          $561,500,000
                    --------------------------------
                    12/31/2006          $780,000,000
                    --------------------------------
</TABLE>

          (b) Total Voice Grade Equivalents. Shall not permit the total number
     of Voice Grade Equivalents of the Borrower and its Subsidiaries as of any
     date set forth below to be less than the number corresponding to such date
     under the heading "Number" set forth below:
<PAGE>

                                       76

<TABLE>
<CAPTION>
                       Date                Number
                       ----                ------
<S>                                     <C>
                    12/31/1999                736
                    06/30/2000              1,784
                    12/31/2000              6,230
                    06/30/2001             21,968
                    12/31/2001             42,471
                    06/30/2002            136,555
                    12/31/2002            241,199
                    06/30/2003            356,268
                    12/31/2003            528,939
                    06/30/2004            645,959
                    12/31/2004            855,496
                    06/30/2005            974,049
                    12/31/2005          1,240,963
                    06/30/2006          1,364,914
                    12/31/2006          1,652,157
</TABLE>

          (c) EBITDA. Shall not permit EBITDA for the four fiscal quarters of
     the Borrower immediately preceding any date set forth below to be less than
     the amount set forth under the heading "Amount" corresponding to such date:

<TABLE>
<CAPTION>
                       Date                 Amount
                       ----                 ------
<S>                                     <C>
                    12/31/1999           $(33,400,000)
                    06/30/2000           $(48,500,000)
                    12/31/2000           $(50,500,000)
                    06/30/2001           $(50,500,000)
                    12/31/2001           $(43,600,000)
                    06/30/2002           $(19,800,000)
                    12/31/2002            $16,500,000
                    06/30/2003            $45,300,000
                    12/31/2003            $82,500,000
                    06/30/2004           $108,500,000
                    12/31/2004           $169,000,000
                    06/30/2005           $199,000,000
                    12/31/2005           $269,900,000
                    06/30/2006           $305,500,000
                    12/31/2006           $389,000,000
</TABLE>
<PAGE>

                                       77

          (d) Total Debt to Contributed Capital. Shall not permit the ratio of
     (i) Total Debt outstanding as of any date of determination to (ii)
     Contributed Capital as of such date of determination to be greater than the
     ratio corresponding to the date set forth below on or at any time during
     the 12 months immediately preceding such date:

<TABLE>
<CAPTION>
                       Date             Ratio
                       ----             -----
<S>                                     <C>
                    12/31/1999          4.50x
                    12/31/2000          4.50x
                    12/31/2001          4.50x
                    12/31/2002          4.50x
                    12/31/2003          4.00x
                    12/31/2004          3.50x
                    12/31/2005          3.00x
                    12/31/2006          2.50x
</TABLE>

          (e) Total Secured Debt to Contributed Capital. Shall not permit the
     ratio of (i) Total Debt owed by the Borrower secured by Shared Liens
     outstanding as of any date of determination to (ii) Contributed Capital as
     of such date of determination to be greater than the ratio corresponding to
     the date set forth below on or immediately preceding such date:

<TABLE>
<CAPTION>
                       Date             Ratio
                       ----             -----
<S>                                     <C>
                    12/31/1999          2.00x
                    06/30/2000          2.00x
                    12/31/2000          2.00x
                    06/30/2001          2.75x
                    12/31/2001          2.75x
                    06/30/2002          2.75x
                    12/31/2002          2.75x
                    06/30/2003          2.70x
                    12/31/2003          2.70x
                    06/30/2004          2.30x
                    12/31/2004          2.30x
                    06/30/2005          2.00x
                    12/31/2005          2.00x
                    06/30/2006          1.95x
                    12/31/2006          1.95x
</TABLE>

<PAGE>

                                       78

          (f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
     permit the ratio of (i) Total Debt owed by the Borrower secured by Shared
     Liens outstanding at of any date of determination to (ii) EBITDA for the
     four consecutive fiscal quarters of the Borrower most recently ended on or
     prior to such date of determination to exceed the ratio corresponding to
     the date set forth below on or immediately proceeding such date of
     determination:

<TABLE>
<CAPTION>
                        Date            Ratio
                        ----            -----
<S>                                     <C>
                    12/31/2002          16.00x
                    06/30/2003           4.40x
                    12/31/2003           3.39x
                    06/30/2004           2.30x
                    12/31/2004           1.30x
                    06/30/2005           0.80x
                    12/31/2005           0.40x
                    06/30/2006           0.30x
                    12/31/2006           0.20x
</TABLE>

          (g) EBITDA to Total Cash Debt Service (Debt service coverage ratio).
     Permit the ratio of (i) EBITDA for the four consecutive fiscal quarters
     ending on any of the dates set forth below to (ii) Total Cash Debt Service
     for the same period to be less than the ratio set forth below opposite such
     date:

<TABLE>
<CAPTION>
                      Date              Ratio
                      ----              -----
<S>                                     <C>
                    12/31/2002          0.44x
                    06/30/2003          0.58x
                    12/31/2003          0.85x
                    06/30/2004          1.05x
                    12/31/2004          1.40x
                    06/30/2005          1.50x
                    12/31/2005          2.00x
                    06/30/2006          3.00x
                    12/31/2006          5.50x
</TABLE>

<PAGE>

                                       79

                                   ARTICLE VI

                                EVENTS OF DEFAULT

     SECTION 6.01. Events of Default. If any of the following events ("Events of
Default") shall occur and be continuing:

          (a) the Borrower shall fail to pay any principal of any Advance when
     the same becomes due and payable or the Borrower shall fail to pay any
     interest on any Advance or make any other payment of fees or other amounts
     payable under this Agreement or any Note within three days after the same
     becomes due and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) in connection with any Loan Document shall prove to have been
     incorrect in any material respect when made; provided that, if such
     inaccuracy is capable of remedy and is in respect of any representation and
     warranty other than those contained in Sections 4.01(a), (b), (c), (d),
     (g), (h), (i), (j), (k), (n) and (y), such inaccuracy shall continue
     unremedied for a period of 10 days; or

          (c) either:

               (i) the Borrower shall fail to perform or observe any term,
          covenant or agreement contained in Section 2.13, 5.01(e), (f), (k) or
          (n), 5.02 or 5.04, or

               (ii) the Borrower shall fail to perform or observe any other
          covenant in this Agreement or any Loan Party shall fail to perform or
          observe any other covenant to be performed or observed by it in any
          other Loan Document, and in any case such failure shall continue
          unremedied for a period of 30 days; or

          (d) any Security Agreement, once executed and delivered, shall cease
     to provide to the Collateral Agent and the Lenders, with the Liens,
     priority, security interests, rights, titles, interests, remedies, powers
     and privileges intended to be created thereby; or

          (e) any of the following shall occur:

               (i) any License or portion thereof shall become invalid or
          unenforceable or shall terminate or not be renewed and, with respect
          to any such portion, such occurrence is reasonably likely to have a
          material adverse effect on the ability of the Borrower to perform its
          payment obligations under the Loan Documents;
<PAGE>

                                       80

               (ii) any rights of the Borrower or any of its Subsidiaries
          thereunder shall be changed and such change is reasonably likely to
          have a material adverse effect on the ability of the Borrower to
          perform its payment obligations under the Loan Documents;

               (iii) any proceeding shall be commenced with the intention of
          revoking the Licenses or a portion thereof that (A) has a reasonable
          likelihood of succeeding and could reasonably be expected to prevent
          the Borrower from operating a material portion of its Network or does
          succeed in revoking all of the Licenses or (B) could reasonably be
          expected to result in or which actually results in, a material adverse
          effect on the ability of the Borrower to perform its payment
          obligations under the Loan Documents; or

               (iv) any Core Territory shall impose any obligation on the
          Borrower or any of its Subsidiaries in respect of any License that is
          reasonably likely to have a material adverse effect on the ability of
          the Borrower to perform its payment obligations under the Loan
          Documents; or

          (f) either:

               (i) the Borrower or any of its Subsidiaries shall fail to pay (A)
          any principal of or premium or interest on or any other amount payable
          in respect of any Debt or (B) any principal of any Subordinated Debt
          or Intercompany Mirror Subordinated Debt, in each case that is
          outstanding in a principal or notional amount of at least $5,000,000
          in the aggregate (but excluding Debt outstanding hereunder) of the
          Borrower or such Subsidiary (as the case may be), when the same
          becomes due and payable (whether by scheduled maturity, required
          prepayment, acceleration, demand or otherwise), and such failure shall
          continue after the applicable grace period, if any, specified in the
          agreement or instrument relating to such Debt; or any other event
          shall occur or condition shall exist under any agreement or instrument
          relating to any such Debt and shall continue after the applicable
          grace period, if any, specified in such agreement or instrument, if
          the effect of such event or condition is to accelerate, or to permit
          the acceleration of, the maturity of such Debt; or any such Debt shall
          be declared to be due and payable, or required to be prepaid or
          redeemed (other than by a regularly scheduled required prepayment or
          redemption), purchased or defeased, or an offer to prepay, redeem,
          purchase or defease such Debt shall be required to be made, in each
          case prior to the stated maturity thereof; or

               (ii) the Parent shall fail to pay any principal of or premium or
          interest on or any other amount payable in respect of any Debt that is
          outstanding in a principal or notional amount of at least $5,000,000
          in the aggregate, when the
<PAGE>

                                       81

          same becomes due and payable (whether by scheduled maturity, required
          prepayment, acceleration, demand or otherwise), and such failure shall
          continue after the applicable grace period, if any, specified in the
          agreement or instrument relating to such Debt; or any other event
          shall occur or condition shall exist under any agreement or instrument
          relating to any such Debt and shall continue after the applicable
          grace period, if any, specified in such agreement or instrument, if
          the effect of such event or condition is to accelerate the maturity of
          such Debt; or any such Debt shall be declared to be due and payable,
          or required to be prepaid or redeemed (other than by a regularly
          scheduled required prepayment or redemption), purchased or defeased,
          or an offer to prepay, redeem, purchase or defease such Debt shall be
          required to be made, in each case prior to the stated maturity
          thereof; or

          (g) the Parent or any Loan Party shall generally not pay its debts as
     such debts become due, or shall admit in writing its inability to pay its
     debts generally, or shall make a general assignment for the benefit of
     creditors; or any proceeding shall be instituted by or against the Parent,
     any Loan Party or any of its Subsidiaries seeking to adjudicate it as
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     concordato, arrangement, adjustment, protection, relief, or composition of
     it or its debts under any law relating to bankruptcy, insolvency,
     reorganization or concordato or relief of debtors, or seeking the entry of
     an order for relief or the appointment of a receiver, trustee, custodian or
     other similar official for it or for any substantial part of its property
     and, in the case of any such proceeding instituted against it (but not
     instituted by it) that is being diligently contested by it in good faith,
     either such proceeding shall remain undismissed, unvacated or unstayed for
     a period of 60 days, or any of the actions sought in such proceeding
     (including without limitation the entry of an order for relief against, or
     the appointment of a receiver, trustee, custodian or other similar official
     for, it or for any substantial part of its property) shall occur; or the
     Parent, any Loan Party or any of its Subsidiaries shall take any corporate
     action to authorize any of the actions set forth above in this subsection
     (g); or

          (h) any judgment or order for the payment of money in excess of
     $5,000,000 shall be rendered against the Parent, the Borrower or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 60 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

          (i) any non-monetary judgment or order shall be rendered against the
     Borrower or any of its Subsidiaries that could be reasonably expected to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay
<PAGE>

                                       82

     of enforcement of such judgment or order, by reason of a pending appeal or
     otherwise, shall not be in effect; or

          (j) the Borrower or any of its ERISA Affiliates shall incur, or in the
     reasonable opinion of the Required Lenders shall be reasonably likely to
     incur liability in excess of $1,000,000 in the aggregate as a result of one
     or more of the following: (i) the occurrence of any ERISA Event; (ii) the
     partial or complete withdrawal of the Borrower or any of its ERISA
     Affiliates from a Multiemployer Plan; or (iii) the reorganization or
     termination of a Multiemployer Plan; or

          (k) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it, or any such Loan Party
     shall so state in writing; or

          (l) any material provisions of this Agreement or any other Loan
     Document shall be or become invalid or unenforceable against the Loan
     Parties that are parties thereto, or any Loan Party shall so assert; or

          (m) a Change of Control shall occur; or the Borrower shall at any time
     for any reason cease to be the record and beneficial owner of all of the
     outstanding Equity Interests in its Subsidiaries other than any Equity
     Interests held by other Persons as of the date hereof; or
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                                       83

          (n) any Core Territory shall declare a moratorium on the payment of
     external debt or impose any restrictions on access to foreign exchange or
     transfer of funds, in any case, and such declaration or imposition is
     reasonably likely to have a Material Adverse Effect; or

          (o) there shall occur any condemnation, taking or expropriation of any
     assets of the Borrower or any of its Subsidiaries that is reasonably likely
     to result in a Material Adverse Effect; or

          (p) in the view of the Lenders, a Material Adverse Change shall occur;
     or

          (q) any default on the part of the Borrower or any of its Subsidiaries
     to comply with its obligations under Section 11.2 of the Supply Agreement
     or any payment obligations set forth in any other agreements entered into
     by the Borrower or any of its Subsidiaries with the Vendor or its
     Affiliates; or

          (r) the Parent or any of its direct or indirect Subsidiaries (other
     than the Borrower and the other Loan Parties) shall engage to any material
     extent in the business of providing data, voice or video services or any
     business that competes with the business conducted by the Borrower and the
     other Loan Parties, in each case, in any Core Territory;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Supermajority Lenders, by written notice to the
Borrower, declare the obligation of each Lender to make Advances to be
terminated, whereupon the same shall forthwith terminate, (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the Notes, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Notes, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower, and (iii) shall at the
request, or may with the consent, of the Required Lenders, foreclose on any and
all of the Collateral in accordance with the terms of the relevant Security
Agreements; provided that upon the occurrence of an Event of Default under
clause 6.01(g) above, (A) the obligation of each Lender to make Advances shall
automatically be terminated and (B) the Notes, all such interest and all such
amounts shall automatically become and be due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrower.
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                                       84

                                   ARTICLE VII

                            THE ADMINISTRATIVE AGENT

     SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers and discretion under this Agreement as are delegated
to the Administrative Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto. As to any matters not expressly
provided for by this Agreement (including without limitation enforcement or
collection of the Notes), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided that the Administrative Agent shall not be required to take any action
that exposes the Administrative Agent to personal liability or that is contrary
to this Agreement or applicable law. The Administrative Agent agrees to give to
each Lender prompt notice of each notice given to it by the Borrower pursuant to
the terms of this Agreement.

     SECTION 7.02. Agent's Reliance, Etc. Neither the Administrative Agent nor
any of its respective directors, officers, agents or employees shall be liable
for any action taken or omitted to be taken by it or them under or in connection
with this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent: (i) may treat the payee of any Note as the holder thereof
until the Administrative Agent receives and accepts an Assignment and Acceptance
entered into by the Lender that is the payee of such Note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or to inspect the
property (including the books and records) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

     SECTION 7.03. Agent and Affiliates. With respect to its Commitment, the
Advances made by it and the Note issued to it, if any, the Person serving as the
Administrative Agent hereunder shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not
the Administrative Agent; and the term
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                                       85

"Lender" or "Lenders" shall, unless otherwise expressly indicated, include the
Administrative Agent in its individual capacity. Any Person serving as
Administrative Agent and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if the Person serving as Administrative
Agent were not the Administrative Agent and without any duty to account therefor
to the Lenders.

     SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

     SECTION 7.05. Indemnification. The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed by the Borrower), ratably
according to the respective principal amounts of the Notes then held by each of
the Lenders (or if no Notes are at the time outstanding or if the Notes are held
by Persons that are not Lenders, ratably according to the respective amounts of
their Commitments), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Administrative Agent, in any way relating to or
arising out of this Agreement or any action taken or omitted by the
Administrative Agent under this Agreement (collectively, the "Indemnified
Costs"); provided that no Lender shall be liable for any portion of the
Indemnified Costs resulting from the gross negligence or willful misconduct of
the Administrative Agent. Without limitation of the foregoing, each Lender
agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred by
it in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, to the extent that such agent is not
reimbursed for such expenses by the Borrower. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05
applies whether any such investigation, litigation or proceeding is brought by
the Administrative Agent, any Lender or a third party.

     SECTION 7.06. Successor Agent. The Administrative Agent may resign at any
time by giving written notice thereof to the Lenders and the Borrower and may be
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Administrative Agent. If no
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                                       86

successor Administrative Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after such
retiring agent's giving of notice of resignation or the Required Lenders'
removal of such retiring agent, then such retiring agent may, on behalf of the
Lenders, appoint a successor Administrative Agent, which shall be a commercial
bank organized or licensed to do business under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $1,000,000,000. Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Administrative
Agent and the retiring Administrative Agent shall be discharged from its duties
and obligations under this Agreement. After any such retiring agent's
resignation or removal hereunder as Administrative Agent, the provisions of this
Article VII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided that

          (a) no amendment, waiver or consent shall, unless in writing and
     signed by all of the Lenders (other than any Lender Party that is, at such
     time, a Defaulting Lender), do any of the following at any time:

               (i) waive any of the conditions specified in Section 3.01 or, in
          the case of the initial Advance, Section 3.02,

               (ii) change the number of Lenders or the percentage of (A) the
          Commitments, or (B) the aggregate unpaid principal amount of the
          Advances that, in each case, shall be required for the Lenders or any
          of them to take any action hereunder,

               (iii) reduce or limit the obligations of any Guarantor under
          Section 1.0 of its Guaranty or otherwise limit any Guarantor's
          liability with respect to the Obligations owing to any Agent and the
          Lenders,
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                                       87

               (iv) release any Collateral in any transaction or series of
          related transactions or permit the creation, incurrence, assumption or
          existence of any Lien on any item of Collateral in any transaction or
          series of related transactions to secure any Obligations other than
          Obligations owing to the Secured Creditors under the Loan Documents,

               (v) amend this Section 8.01,

               (vi) increase the Commitments of the Lenders or subject the
          Lenders to any additional obligations,

               (vii) reduce the principal of, or interest on, the Advances or
          any fees or other amounts payable hereunder,

               (viii) postpone any date fixed for any payment of principal of,
          or interest on, the Borrowings or any fees or other amounts payable,
          or

               (ix) limit the liability of any Loan Party under any of the Loan
          Documents, and

          (b) no amendment, waiver or consent shall, unless in writing and
     signed by an Agent in addition to the Lenders required above to take such
     action, affect the rights or (in the case of the Administrative Agent)
     duties of such Agent under this Agreement.
<PAGE>

                                       88

SECTION 8.02. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and mailed, telecopied, telegraphed, telexed or delivered, if to
the Borrower, at its address at Diginet Americas, Inc.,3201 New Mexico Ave. NW,
Suite 320, Washington, D.C. 20016, Attention: Laurence A. Hinz; if to the
Initial Lender, at its Lending Office specified opposite its name on the
signature pages hereto; if to any other Lender, at its Lending Office specified
in the Assignment and Acceptance pursuant to which it became a Lender; and if to
the Administrative Agent, at its address at 283 King George Road, Warren, NJ
07059, Attention: Assistant Treasurer - Customer Finance, Fax: (908) 559-1711;
or, as to the Borrower or the Administrative Agent, at such other address as
shall be designated by such party in a written notice to the other parties and,
as to each other party, at such other address as shall be designated by such
party in a written notice to the Borrower and the Administrative Agent. All such
notices and communications shall, when hand delivered, telecopied, telegraphed
or telexed, be effective when hand delivered, telecopied, delivered to the
telegraph company or confirmed by telex answerback, respectively, and when sent
by regular mail, postage prepaid, return receipt requested shall be effective 5
days after the date of its deposit in the mails, except that notices and
communications to the Administrative Agent pursuant to Article II, III or VII
shall not be effective until received by the Administrative Agent. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit to be executed and
delivered hereunder shall be effective as delivery of a manually executed
counterpart thereof.

     SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender,
the Administrative Agent or the Collateral Agent to exercise, and no delay in
exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

     SECTION 8.04. Costs and Expenses; Indemnification. (a) The Borrower will
pay on demand

          (i) all costs and expenses of the Administrative Agent and the Lenders
     in connection with the preparation, execution, delivery, administration,
     modification and amendment of the Loan Documents (including, without
     limitation, (A) all due diligence, collateral review, syndication,
     transportation, computer, duplication, appraisal, audit, insurance,
     consultant, search, filing and recording fees and expenses, (B) the
     reasonable fees and expenses of a single counsel for the Agents in each
     relevant jurisdiction with respect thereto, and (C) the reasonable fees and
     expenses of a single counsel for the Agents in each relevant jurisdiction
     with respect to advising the Agents as to their respective rights and
     responsibilities, or the perfection, protection or preservation of rights
     or interests, under the Loan Documents, with respect to negotiations with
     any Loan Party or with other creditors of any Loan Party or any of its
     Subsidiaries arising out of any Default or any events or circumstances that
     may give rise to a Default and with
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                                       89

     respect to presenting claims in or otherwise participating in or monitoring
     any bankruptcy, insolvency or other similar proceeding involving creditors'
     rights generally and any proceeding ancillary thereto), and

          (ii) all costs and expenses of the Administrative Agent and the Lender
     Parties in connection with the enforcement of the Loan Documents, whether
     in any action, suit or litigation, any bankruptcy, insolvency or other
     similar proceeding affecting creditors' rights generally (including,
     without limitation, the reasonable fees and expenses of a single counsel
     for the Administrative Agent and each Lender Party in each relevant
     jurisdiction with respect thereto).

     (b) The Borrower will indemnify and hold harmless the Administrative Agent
and each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including without
limitation reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising in any
way out of or in connection with or by reason of (i) the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances, except to the extent such claim, damage, loss,
liability or expense resulted from such Indemnified Party's gross negligence or
willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 8.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by the Borrower, its directors, shareholders or creditors
or an Indemnified Party or any other Person or any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated
hereby are consummated. The Borrower also agrees not to assert any claim against
the Agent, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys and agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out
of or otherwise relating to the Notes, this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the
Advances.

     (c) If any payment of principal of any Advance is made by the Borrower to
or for the account of a Lender other than on the last day of the Interest Period
for such Advance, as a result of a payment pursuant to Section 2.09(c) and (d),
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, the Borrower shall, upon written demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender any amounts reasonably required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment, including without limitation any
loss, cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Lender to fund or maintain such Advance.
The loss to any Lender attributable to any such event shall be deemed to be an
amount determined by such Lender to be equal to the excess, if any, of (i) the
amount of interest that such Lender would pay for a deposit equal to the
principal amount of the applicable Eurodollar Rate Advance so prepaid or
accelerated, as applicable, for the period from the date of such payment or
acceleration to the last day of the then current Interest Period for
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                                       90

such Eurodollar Rate Advance if the interest rate payable on such deposit were
equal to the Eurodollar Rate for such Interest Period, over (ii) the amount of
interest that such Lender would earn on such principal amount for such period if
such Lender were to invest such principal amount for such period at the interest
rate that would be bid by such Lender (or an Affiliate of such Lender) for
dollar deposits from other banks in the eurodollar market at the commencement of
such period. A certificate as to the amount of such loss, cost or expense,
submitted to the Borrower by such Lender, shall be conclusive and binding for
all purposes, absent manifest error.

     (d) If any Loan Party fails to pay when due any costs, expenses or other
amounts payable by it under any Loan Document, including, without limitation,
fees and expenses of counsel and indemnities, such amount may be paid on behalf
of such Loan Party by the Agents or any Lender Party, in its sole discretion.

     (e) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.09, 2.11 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

     SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender or such Affiliate to or for the credit or the account
of the Borrower against any and all of the obligations of the Borrower now or
hereafter existing under this Agreement and the Note held by such Lender,
whether or not such Lender shall have made any demand under this Agreement or
such Note and although such obligations may be unmatured. Each Lender agrees
promptly to notify the Borrower in writing after any such set-off and
application; provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its
Affiliates under this Section 8.05 are in addition to other rights and remedies
(including without limitation other rights of set-off) that such Lender and its
Affiliates may have.

     SECTION 8.06. Binding Effect. This Agreement shall become effective (other
than Section 2.01(a), which shall only become effective upon satisfaction of the
conditions precedent set forth in Sections 3.01), when (i) this Agreement shall
have been executed by the Borrower, the Administrative Agent and the Initial
Lender, and thereafter this Agreement shall be binding upon and inure to the
benefit of the Borrower, the Administrative Agent and each Lender and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lenders.
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                                       91

     SECTION 8.07. Assignments and Participations. (a) Each Lender may assign to
an Eligible Assignee all or a portion of its rights and obligations under this
Agreement (including without limitation all or a portion of its Commitment, the
Advances owing to it and the Note or Notes held by it and either outstanding
Advances or Commitments); provided that (i) except in the case of an assignment
to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender's rights and obligations under this Agreement, the
amount of the Advances and unfunded Commitment of the assigning Lender being
assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $5,000,000 (except that this clause shall not prohibit the assignment
of a Fronting Commitment as contemplated by Section 2.02 in an amount equal to
the Advance that the Initial Lender would have made but for such assignment) and
(ii) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, together with any Note subject to such assignment
and, except in the case of an assignment by the Initial Lender, a processing and
recordation fee of $3,500. Notwithstanding the foregoing, nothing in this
Section shall be construed to prohibit the assignment of a proportionate part of
all of the assigning Lender's rights and obligations in respect of (A) Advances
separately from (or without assigning) Commitments, (B) Commitments separately
from (or without assigning) Advances, (C) Tranche A Commitments or Tranche A
Advances separately from (or without assigning) Tranche B Commitments or Tranche
B Advances or (D) Tranche B Commitments or Tranche B Advances separately from
(or without assigning) Tranche A Commitments or Tranche A Advances. Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder shall
be a party hereto and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, have the rights
and obligations of a Lender hereunder and (y) the Lender assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall upon
such assignment cease to be a party hereto).

     (b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement and the Intercreditor
Agreement, together with copies of the
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                                       92

financial statements referred to in Section 4.01 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
Administrative Agent and the Collateral Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Administrative Agent and the Collateral Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance with
their terms all of the obligations that by the terms of this Agreement and the
Intercreditor Agreement are required to be performed by it as a Lender.

     (c) The Administrative Agent shall maintain at its address referred to in
Section 8.02 a copy of each Assignment and Acceptance delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Advances owing to,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent, the Collateral Agent and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

     (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and (iii) give
prompt written notice thereof to the Borrower. Within five Business Days after
its receipt of such notice and at the request of such assignee Lender, the
Borrower, at its own expense, shall execute and deliver to the Administrative
Agent in exchange for any surrendered Note a new Note to the order of such
Assignee in an amount equal to the Commitment assumed by it pursuant to such
Assignment and Acceptance and, if the assigning Lender has retained a Commitment
hereunder, a new Note to the order of the assigning Lender in an amount equal to
the Commitment retained by it hereunder. Such new Note or Notes shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Note or Notes, shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of Exhibit A.

     (e) Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including without
limitation all or a portion of its Commitment, the Advances owing to it and the
Note or Notes held by it); provided that (i) such
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                                       93

Lender's obligations under this Agreement (including without limitation its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Administrative Agent,
the Collateral Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of this Agreement or any Note, or any consent to any departure by the
Borrower therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation, or to the extent that any such
amendment or consent provides for a release of the Borrower's obligations under
the Security Agreements or any Subsidiary's obligations under any Guaranty.

     (f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree in writing to
preserve the confidentiality of any Confidential Information relating to the
Borrower received by it from such Lender.

     (g) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including without limitation the Advances owing to
it and the Note held by it) in favor of any Federal Reserve Bank in accordance
with Regulation A of the Board of Governors of the Federal Reserve System.

     SECTION 8.08. Confidentiality. Neither the Administrative Agent nor any
Lender shall disclose any Confidential Information to any other Person without
the consent of the Borrower, other than (a) to the Administrative Agent's, the
Collateral Agent or such Lender's Affiliates and their officers, directors,
employees, agents and advisors and, as contemplated by Section 8.07(f), to
actual or prospective assignees and participants, and then only on a
confidential basis, (b) to any party to the Intercreditor Agreement, (c) as
required by any law, rule or regulation or judicial process and (d) as requested
or required by any state, federal or foreign authority or examiner regulating
banks or banking.

     SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York.

     SECTION 8.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of
<PAGE>

                                       94

which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

     SECTION 8.11. Jurisdiction, Judgment Currency, Etc. (a) Each of the parties
hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
federal court of the United States of America sitting in New York City in the
Borough of Manhattan, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the Notes, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or the Notes in the courts of any
jurisdiction.

     (b) Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the Notes in any New
York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

     (c) (i) If, for the purpose of obtaining judgment in any court, it is
necessary to convert a sum due hereunder to any party hereunder in one currency
into another currency, the parties hereto agree, to the fullest extent permitted
by law, that the rate of exchange used shall be that at which in accordance with
its normal banking procedures such party could purchase the first currency with
such other currency on the day which is at least two Business Days prior to the
day on which final judgment is rendered.

     (ii) To the fullest extent permitted by law, the obligation of any party in
respect of any sum payable hereunder by it to any other party hereunder shall,
notwithstanding any judgment in a currency (the "Judgment Currency") other than
Dollars (the "Agreement Currency"), be discharged only to the extent that on the
Business Day following receipt by such other party of any sum adjudged to be so
due in the Judgment Currency such other party may in accordance with normal
banking procedures purchase the Agreement Currency with the Judgment Currency;
if the amount of the Agreement Currency which could have been so purchased is
less than the sum originally due to such other party in the Agreement Currency,
such first party agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such other party against such loss, and, if the amount of
the Agreement Currency which could have been so purchased exceeds the sum
originally due to such other party, such
<PAGE>

                                       95

other party agrees to remit to such first party such excess; provided that
neither any Lender nor the Administrative Agent shall have any obligation to
remit any such excess as long as the Borrower shall have failed to pay any
Lender or the Administrative Agent, as the case may be, any obligations due and
payable under this Agreement, in which case such excess may be applied to such
obligations of the Borrower hereunder in accordance with the terms of this
Agreement.

     SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the
Administrative Agent and the Lenders hereby irrevocably waive, to the extent
permitted by law, all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement or the Notes or the actions of any Agent or any
Lender in the negotiation, administration, performance or enforcement thereof.

     SECTION 8.13. Intercreditor Arrangements. Each of the Lenders and the
Borrower acknowledge that the Lenders hereunder, together with any Other Secured
Creditors, shall be considered to be joint creditors (credores solidarios) with
respect to the Obligations under the Loan Documents and the obligations owed to
such Other Secured Creditors; provided that if requested by the Borrower, any
Other Secured Creditors or potential Other Secured Creditors, the Lenders and
the Agents agree to negotiate in good faith with a view to agreeing to a
substitute structure governing the equal sharing of Collateral under Brazilian
law and to documentation reflecting such structure.

     SECTION 8.14. Intercreditor Agreement; Amendments to Ericsson Credit
Agreement. Except with the consent of the Borrower, the Lenders shall not amend
or modify Section 4.1(a) of the Intercreditor Agreement in a manner that would
add to the limitations set forth therein on the ability of the lenders party to
any Permitted Loan Agreement (as defined in the Intercreditor Agreement) to
agree to amendments to or modifications of such Permitted Loan Agreement. The
Borrower shall not enter into any amendment to or modification of the Ericsson
Credit Agreement unless it shall at the same time have offered to enter into an
amendment to or modification of this Agreement on substantially the same terms.
<PAGE>

                                       96

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        DIVEO, INC.

                                        By
                                          -------------------------------------
                                           Title:

                                        LUCENT TECHNOLOGIES INC., as
                                        Administrative Agent and Initial Lender

                                        By
                                          -------------------------------------
                                           Title:

Tranche A Commitment:  $62,500,000      LUCENT TECHNOLOGIES INC.
Tranche B Commitment:  $37,500,000
(plus undrawn Tranche A Commitments
at the Tranche A Termination Date)

Lending Office and Address for Notices:
283 King George Road
Warren, NJ  07059
Attention:  Assistant Treasurer - Customer Finance
Fax:  (908) 559-1711

<PAGE>

                                                                  EXECUTION COPY

                          WAIVER AND AMENDMENT NO. 2
                           TO THE CREDIT AGREEMENTS

                                    Dated as of March 24, 2000

To:  Ericsson Credit AB, as Lender
     under the Ericsson Credit Agreement referred to below

     Lucent Technologies Inc., as Lender
     under the Lucent Credit Agreement referred to below

Ladies and Gentlemen:

          We refer to the Amended and Restated Credit Agreement dated as of
November 24, 1999 (as amended pursuant to Waiver and Amendment No.1 to the
Credit Agreements dated as of January 14, 2000 and as otherwise amended or
modified from time to time, the "Ericsson Credit Agreement"), among Diveo, Inc.
                                 -------------------------
(the "Borrower"), Ericsson Credit AB, as Initial Lender, and Ericsson Credit AB,
      --------
as Administrative Agent ("Ericsson") and to the Credit Agreement dated as of
                          --------
November 22, 1999 (as amended pursuant to Waiver and Amendment No.1 to the
Credit Agreements dated as of January 14, 2000 and as otherwise amended or
modified from time to time, the "Lucent Credit Agreement", and together with the
                                 -----------------------
Ericsson Credit Agreement, the "Credit Agreements"), among Diveo, Inc. (the
                                -----------------
"Borrower"), Lucent Technologies Inc., as Initial Lender, and Lucent
 --------
Technologies Inc., as Administrative Agent ("Lucent").  With respect to each
                                             ------
Credit Agreement, capitalized terms not otherwise defined in this Waiver and
Amendment No. 2 have the same meanings as specified in such Credit Agreement.

1.   We hereby request from Ericsson that the Ericsson Credit Agreement be
amended as follows:

     (a)  The first paragraph of the recitals to the Agreement be deleted in its
          entirety and replaced with the following:

               "The Borrower has been formed in order to plan, construct,
          operate and maintain digital wireless local loop voice and data
          networks and Internet infrastructure for web hosting, collocation and
          other enhanced Internet services (each, a "Network") in the United
                                                     -------
          States of America, Mexico, Central America and South America (the
          "Territory") (the planning, construction, operation and maintenance of
           ---------
          the Networks being the "Project")."
                                  -------

     (b)  The definition of "Blocked Account" be amended by inserting the words
          "owing to the Vendor" before the phrase "under the Supply Agreement".
<PAGE>

     (c)  The definition of "Core Territories" be deleted in its entirety and
          replaced with the following:

               ""Core Territories" means the United States of America,
                 ----------------
          Argentina, Brazil, Colombia, Panama, Peru and Uruguay."

     (d)  The definition of "Tranche B Commitment" be deleted in its entirety
          and replaced with the following:

               ""Tranche B Commitment" means, with respect to any Lender at any
                 --------------------
          time, the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment", as such amount may be reduced from time to
          time pursuant to Section 2.04."

     (e)  The definition of "Tranche B Effective Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Effective Date" means, with respect to the Tranche B
                 ------------------------
          Commitments of the Lenders, January 1, 2001."

     (f)  The definition of "Tranche B Termination Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Termination Date" means the earlier of the eighteen
                 --------------------------
          month anniversary of the Tranche B Effective Date and the date of
          termination in whole of the Tranche B Commitments pursuant to Section
          2.04 or 6.01."

     (g)  Section 2.01 be amended as follows:

          (i)  The second sentence of Section 2.01(a) be deleted in its entirety
               and replaced by the following: "Each Borrowing consisting of
               Tranche A Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the
               16/th/ day of the month preceding the month in which the date of
               the proposed Borrowing falls to the 16/th/ day of the month in
               which the date of the proposed Borrowing falls and (B) that were
               not paid with the proceeds of any prior Borrowing and (ii)
               interest owing on Borrowings to be paid with the proceeds
               thereof."; and

          (ii) The second sentence of Section 2.01(b) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche B Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply
<PAGE>

               Agreement during the period from the 16/th/ day of the month
               preceding the month in which the date of the proposed Borrowing
               falls to the 16/th/ day of the month in which the date of the
               proposed Borrowing falls and (B) that were not paid with the
               proceeds of any prior Borrowing and (ii) interest owing on
               Borrowings to be paid with the proceeds thereof."

     (h)  Section 2.02(a) be amended as follows:

          (i)  Insertion of a new subclause (C):  "whether such Borrowing will
               be a Tranche A Borrowing or a Tranche B Borrowing,"; and the
               renaming of existing subclause (C) as subclause (D); and

          (ii) Insertion of a new subclause (E):  "the third party invoices for
               Ancillary Services (as defined in Annex 6 to the Supply
               Agreement) to be paid with the proceeds of such Borrowing, the
               respective amounts of such invoices to be paid and the aggregate
               amount of such invoices to be paid, and"; and the renaming of
               existing subclause (D) as subclause (F).

     (i)  Section 2.03(b) be amended as follows:

               The word "1.10%" contained in the third to last line of Section
          2.03(b) be deleted and replaced with the word "1.45%".

     (j)  Section 2.05(b) be amended as follows:

               The first sentence be deleted and replaced with the following:
          "The Borrower shall repay to the Administrative Agent for the ratable
          account of the Lenders that have made Tranche B Advances the aggregate
          outstanding principal amount of the Tranche B Advances in nine
          installments (i) the first of which shall be payable on January 1,
          2003 and (ii) otherwise payable on the last day of every sixth
          calendar month after the twenty-four month anniversary of the Tranche
          B Effective Date, each in an amount equal to the product obtained by
          multiplying (a) the unpaid principal amount of such Tranche B Advances
          outstanding on the Tranche B Termination Date by (b) 11.111%; provided
                                                                        --------
          that the last such installment shall be in an amount necessary to
          repay in full the unpaid principal amount of the Tranche B Advances."

     (k)  Section 2.13 be amended as follows:

          (i)  deleting the last sentence in its entirety and replacing it with
               the following:

               "The proceeds of the Advances available to make Back-to-Back
               Loans described in clause (a) of the preceding sentence shall be
               paid directly to the financial institution providing Back-to-Back
               Loans and the proceeds of such Back-to-Back Loans made to
               Operating Subsidiaries in Argentina, Brazil, Peru and Uruguay (in
               the case of Uruguay, subject to applicable
<PAGE>

                law) to be used to pay invoices issued by the Vendor under the
                Supply Agreement shall at all times be held in Blocked Accounts
                until disbursed to pay invoices owing to the Vendor under the
                Supply Agreement."; and

          (ii)  adding after the first paragraph a second paragraph to read as
                follows:

                "Notwithstanding anything in the Supply Agreement to the
                contrary, the Operating Subsidiaries shall use commercially
                reasonable efforts to use the proceeds of the Back-to-Back Loans
                to pay amounts owing under invoices issued or accepted by the
                Vendor pursuant to the Supply Agreement, and as specified in the
                related Notice of Borrowing, no later than the last day of the
                month in which such proceeds were received."

     (l)  Section 5.02(a) be amended as follows:

          (i)   insertion of a new clause (xii) containing the following:

                "Debt in the form of promissory notes issued to the selling
                stockholders in connection with the acquisition of INEA, S.A.,
                in a principal amount not to exceed $2,800,000, and";

          (ii)  the existing clause (xii) of Section 5.02(a) be renamed clause
                (xiii), and the word "(xi)" in the second line of the renamed
                clause (xiii) be deleted and replaced with the word "(xii)"; and

          (iii) clause (vi) be deleted in its entirety and replaced with the
                following:

                "(vi)  Debt incurred in connection with the entering into by the
                Borrower or a Subsidiary thereof of Capitalized Leases in
                aggregate principal amount (including any such Debt incurred to
                refinance such Debt, as permitted by clause (xii) below) at any
                one time outstanding not exceeding (A) $100,000,000, with
                respect to any indefeasible rights of use of fiber and (B)
                $10,000,000, with respect to Capitalized Leases other than
                indefeasible rights of use of fiber,"

     (m)  Section 5.02(o) be deleted in its entirety and replaced with the
          following:

                "(o)   Gross PP&E.  Make or permit its Subsidiaries to make any
                       ----------
                Capital Expenditures that would cause the Gross PP&E of the
                Borrower and its Subsidiaries in any period set forth below to
                exceed the amount set forth below for such period.

<TABLE>
<CAPTION>
                       Year Ending In            Amount
                       --------------            ------
                       <S>                       <C>
                          12/31/99               $  115,000,000
                          12/31/00               $  325,564,000
</TABLE>
<PAGE>

<TABLE>
                       <S>                    <C>
                       12/31/01               $  466,052,000
                       12/31/02               $  587,322,000
                       12/31/03               $  716,357,000
                       12/31/04               $  867,065,000
                       12/31/05               $1,028,336,000
                       12/31/06               $1,204,626,000
</TABLE>
                                                                           "

     (n)  Section 5.02(p) be deleted in its entirety and replaced with the
following:

               "(p) Lease Obligations. Create, incur, assume or suffer to exist,
                    -----------------
                    or permit any of its Subsidiaries to create, incur, assume
                    or suffer to exist

                    (i)  any obligations as lessee for the rental or hire of
                         real or personal property of any kind under leases or
                         agreements to lease having a term of one year or more
                         from the date of execution thereof (other than
                         Capitalized Leases) that would cause the direct and
                         contingent liabilities of it and its Subsidiaries, on a
                         Consolidated basis, in respect of all such obligations
                         in any period set forth below to exceed the amount set
                         forth below for such period;

<TABLE>
<CAPTION>
                    Year Ending In               Amount
                    --------------               ------
                    <S>                        <C>
                       12/31/99                $ 7,500,000
                       12/31/00                $12,723,000
                       12/31/01                $18,283,000
                       12/31/02                $31,472,000
                       12/31/03                $42,835,000
                       12/31/04                $55,702,000
                       12/31/05                $69,685,000
                       12/31/06                $86,153,000
</TABLE>

                    or

                    (ii) any obligations under Capitalized Leases that would
                    cause the direct and contingent liabilities of it and its
                    Subsidiaries, on a Consolidated basis, in respect of all
                    such obligations to exceed at any time (A) $100,000,000,
                    with respect to indefeasible rights of use of fiber and (B)
                    $10,000,000, with respect to Capitalized Leases other than
                    indefeasible rights of use of fiber."
<PAGE>

     (o)  Section 5.04(a) be deleted in its entirety and replaced with the
following:

               "(a) Revenue.  Shall not permit its Revenue for the
                    -------
               period beginning on the first day of the Borrower's fiscal year
               in which a date set forth below occurs and ending on such date to
               be less than the amount corresponding to such date under the
               heading "Revenue" set forth below:

<TABLE>
<CAPTION>
                    Date                      Revenue
                                              -------
             ----------------------------------------------------
             <S>                              <C>
                 12/31/1999                    $      650,000
             ----------------------------------------------------
                 03/31/2000                    $      519,000
             ----------------------------------------------------
                 06/30/2000                    $    1,530,000
             ----------------------------------------------------
                 09/30/2000                    $    3,165,000
             ----------------------------------------------------
                 12/31/2000                    $    6,501,000
             ----------------------------------------------------
                 03/31/2001                    $    4,739,000
             ----------------------------------------------------
                 06/30/2001                    $   11,659,000
             ----------------------------------------------------
                 09/30/2001                    $   21,275,000
             ----------------------------------------------------
                 12/31/2001                    $   34,331,000
             ----------------------------------------------------
                 03/31/2002                    $   21,066,000
             ----------------------------------------------------
                 06/30/2002                    $   52,052,000
             ----------------------------------------------------
                 09/30/2002                    $   96,045,000
             ----------------------------------------------------
                 12/31/2002                    $  157,550,000
             ----------------------------------------------------
                 03/31/2003                    $   69,264,000
             ----------------------------------------------------
                 06/30/2003                    $  155,844,000
             ----------------------------------------------------
                 09/30/2003                    $  249,350,000
             ----------------------------------------------------
                 12/31/2003                    $  346,319,000
             ----------------------------------------------------
                 03/31/2004                    $  117,257,000
             ----------------------------------------------------
                 06/30/2004                    $  263,828,000
             ----------------------------------------------------
                 09/30/2004                    $  422,124,000
             ----------------------------------------------------
                 12/31/2004                    $  586,283,000
             ----------------------------------------------------
                 03/31/2005                    $  177,795,000
             ----------------------------------------------------
                 06/30/2005                    $  389,456,000
             ----------------------------------------------------
                 09/30/2005                    $  618,049,000
             ----------------------------------------------------
                 12/31/2005                    $  846,643,000
             ----------------------------------------------------
                 03/31/2006                    $  239,958,000
             ----------------------------------------------------
                 06/30/2006                    $  512,637,000
             ----------------------------------------------------
                 09/30/2006                    $  796,223,000
             ----------------------------------------------------
                 12/31/2006                    $1,090,717,000
             ----------------------------------------------------
</TABLE>
                                                                      "

     (p)  Section 5.04(b) be deleted in its entirety and replaced with the
following:

               "(b) Total Voice Grade Equivalents. Shall not permit the total
                    -----------------------------
             number of Voice Grade Equivalents of the Borrower and its
             Subsidiaries as of any
<PAGE>

          date set forth below to be less than the number corresponding to such
          date under the heading "Number" set forth below:

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
               <S>                    <C>
               12/31/1999                   736
               06/30/2000                 3,071
               12/31/2000                 9,040
               06/30/2001                22,999
               12/31/2001                50,859
               06/30/2002               154,612
               12/31/2002               251,548
               06/30/2003               398,177
               12/31/2003               544,806
               06/30/2004               723,723
               12/31/2004               902,639
               06/30/2005             1,074,614
               12/31/2005             1,246,590
               06/30/2006             1,428,556
               12/31/2006             1,610,522
</TABLE>
                                                  "

     (q)  Section 5.04(c) be deleted in its entirety and replaced with the
following:

               "(c) EBITDA. Shall not permit EBITDA for the four fiscal quarters
                    ------
               of the Borrower immediately preceding any date set forth below to
               be less than the amount set forth under the heading "Amount"
               corresponding to such date:

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
                <S>                   <C>
                12/31/1999            $ (33,400,000)
                06/30/2000            $ (65,781,000)
                12/31/2000            $ (99,000,000)
                06/30/2001            $(104,973,000)
                12/31/2001            $ (94,147,000)
                06/30/2002            $ (70,976,000)
                12/31/2002            $ (18,000,000)
                06/30/2003            $  63,982,000
                12/31/2003            $ 106,506,000
                06/30/2004            $ 174,099,000
                12/31/2004            $ 254,406,000
                06/30/2005            $ 332,296,000
                12/31/2005            $ 404,196,000
                                      $ 482,098,000
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
                <S>                   <C>
                06/30/2006
                12/31/2006            $ 543,904,000
</TABLE>

                                                       "

     (r)  Section 5.04(d) be deleted in its entirety and replaced with the
following:

               "(d) Total Debt to Contributed Capital. Shall not permit the
                    ---------------------------------
               ratio of (i) Total Debt outstanding as of any date of
               determination to (ii) Contributed Capital as of such date of
               determination to be greater than the ratio corresponding to the
               date set forth below on or at any time during the 12 months
               immediately preceding such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/1999             4.50x
               12/31/2000             2.50x
               12/31/2001             2.50x
               12/31/2002             2.50x
               12/31/2003             2.50x
               12/31/2004             2.50x
               12/31/2005             2.50x
               12/31/2006             2.50x
</TABLE>

                                                   "

     (s) Section 5.04(e) be deleted in its entirety and replaced with the
following:

               "(e) Total Secured Debt to Contributed Capital. Shall not permit
                    -----------------------------------------
               the ratio of (i) Total Debt owed by the Borrower secured by
               Shared Liens outstanding as of any date of determination to (ii)
               Contributed Capital as of such date of determination to be
               greater than the ratio corresponding to the date set forth below
               on or immediately preceding such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/1999             2.00x
               06/30/2000             1.75x
               12/31/2000             1.75x
               06/30/2001             1.75x
               12/31/2001             1.75x
               06/30/2002             1.75x
               12/31/2002             1.75x
               06/30/2003             1.75x
               12/31/2003             1.75x
               06/30/2004             1.75x
                                      1.75x
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2004
               06/30/2005             1.75x
               12/31/2005             1.75x
               06/30/2006             1.75x
               12/31/2006             1.75x
</TABLE>

                                                 "

     (t)  Section 5.04(f) be deleted in its entirety and replaced with the
following:

               "(f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
                    -------------------------------------------------
               permit the ratio of (i) Total Debt owed by the Borrower secured
               by Shared Liens outstanding at of any date of determination to
               (ii) EBITDA for the four consecutive fiscal quarters of the
               Borrower most recently ended on or prior to such date of
               determination to exceed the ratio corresponding to the date set
               forth below on or immediately proceeding such date of
               determination:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2002              N/A
               06/30/2003             6.06x
               12/31/2003             3.90x
               06/30/2004             2.30x
               12/31/2004             1.30x
               06/30/2005             0.80x
               12/31/2005             0.40x
               06/30/2006             0.30x
               12/31/2006             0.20x
</TABLE>

                                                 "

     (u)  Section 5.04(g) be deleted in its entirety and replaced with the
following:

               "(g) EBITDA to Total Cash Debt Service (Debt service coverage
                    --------------------------------------------------------
               ratio). Permit the ratio of (i) EBITDA for the four consecutive
               -----
               fiscal quarters ending on any of the dates set forth below to
               (ii) Total Cash Debt Service for the same period to be less than
               the ratio set forth below opposite such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2002              N/A
               12/31/2002             0.58x
               12/31/2003             0.62x
               06/30/2004             1.05x
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2004             1.40x
               06/30/2005             1.50x
               12/31/2005             2.00x
               06/30/2006             3.00x
               12/31/2006             3.65x
</TABLE>

                                                 "

     (v)  Section 5.02(f) be deleted in its entirety and replaced with the
          following:

               "(f) Other Business. Engage or permit any Subsidiary to engage,
                    --------------
          directly or indirectly, in any business other than the offering of
          data, voice or video services in the Territory, whether as a
          competitive access provider, a competitive local exchange carrier,
          Internet access provider or provider of enhanced Internet services."

     (w)  Section 6.01(q) be amended by inserting the words "of Annex 6"
          immediately before the phrase "of the Supply Agreement".

     (x)  The signature page be amended by deleting the words "(plus undrawn
          Tranche A Commitments at the Tranche A Termination Date)" from the
          Tranche B Commitment language set forth opposite Ericsson's name
          thereon.

2.   We hereby request from Lucent that the Lucent Credit Agreement be amended
     as follows:

     (a)  The first paragraph of the recitals to the Agreement be deleted in its
          entirety and replaced with the following:

               "The Borrower has been formed in order to plan, construct,
          operate and maintain digital wireless local loop voice and data
          networks and Internet infrastructure for web hosting, collocation and
          other enhanced Internet services (each, a "Network") in the United
                                                     -------
          States of America, Mexico, Central America and South America (the
          "Territory") (the planning, construction, operation and maintenance of
           ---------
          the Networks being the "Project")."
                                  -------

     (b)  The definition of "Blocked Account" be amended by inserting the words
          "owing to the Vendor" before the phrase "under the Supply Agreement".

     (c)  The definition of "Core Territories" be deleted in its entirety and
          replaced with the following:

               ""Core Territories" means the United States of America,
                 ----------------
          Argentina, Brazil, Colombia, Panama, Peru and Uruguay."
<PAGE>

     (d)  The definition of "Tranche B Commitment" be deleted in its entirety
          and replaced with the following:

               ""Tranche B Commitment" means, with respect to any Lender at any
                 --------------------
          time, the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment", as such amount may be reduced from time to
          time pursuant to Section 2.04."

     (e)  The definition of "Tranche B Effective Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Effective Date" means, with respect to the Tranche B
                 ------------------------
          Commitments of the Lenders, January 1, 2001."

     (f)  The definition of "Tranche B Termination Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Termination Date" means the earlier of the eighteen
                 --------------------------
          month anniversary of the Tranche B Effective Date and the date of
          termination in whole of the Tranche B Commitments pursuant to Section
          2.04 or 6.01."

     (g)  Section 2.01 be amended as follows:

          (i)  The second sentence of Section 2.01(a) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche A Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the 16th
               day of the month preceding the month in which the date of the
               proposed Borrowing falls to the 16th day of the month in which
               the date of the proposed Borrowing falls and (B) that were not
               paid with the proceeds of any prior Borrowing and (ii) interest
               owing on Borrowings to be paid with the proceeds thereof."; and

          (ii) The second sentence of Section 2.01(b) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche B Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the 16th
               day of the month preceding the month in which the date of the
               proposed Borrowing falls to the 16th day of the month in which
               the date of the proposed Borrowing falls and (B) that were not
               paid with the proceeds of any prior Borrowing and (ii) interest
               owing on Borrowings to be paid with the proceeds thereof."

     (h)  Section 2.02(a)(ii) be amended as follows:
<PAGE>

          (i)  Insertion of a new subclause (C):  "whether such Borrowing will
               be a Tranche A Borrowing or a Tranche B Borrowing,"; and the
               renaming of existing subclauses (C) and (D) as new subclauses (D)
               and (E); and

          (ii) The newly renamed subclause (D) be deleted in its entirety and
               replaced with the following:  "(D) the invoices issued or
               accepted by the Vendor pursuant to the Supply Agreement to be
               paid with the proceeds of such Borrowing, the respective amounts
               of such invoices to be paid and the aggregate amount of such
               invoices to be paid, and".

     (i)  Section 2.03(b) be amended as follows:

               The word "1.10%" contained in the third to last line of Section
          2.03(b) be deleted and replaced with the word "1.45%".

     (j)  Section 2.05(b) be amended as follows:

               The first sentence be deleted and replaced with the following:
          "The Borrower shall repay to the Administrative Agent for the ratable
          account of the Lenders that have made Tranche B Advances the aggregate
          outstanding principal amount of the Tranche B Advances in nine
          installments (i) the first of which shall be payable on January 1,
          2003 and (ii) otherwise payable on the last day of every sixth
          calendar month after the twenty-four month anniversary of the Tranche
          B Effective Date, each in an amount equal to the product obtained by
          multiplying (a) the unpaid principal amount of such Tranche B Advances
          outstanding on the Tranche B Termination Date by (b) 11.111%; provided
                                                                        --------
          that the last such installment shall be in an amount necessary to
          repay in full the unpaid principal amount of the Tranche B Advances."

     (k)  Section 2.13 be amended as follows:

          (i)  deleting the last sentence in its entirety and replacing it with
               the following:

               "The proceeds of the Advances available to make Back-to-Back
               Loans described in clause (a) of the preceding sentence shall be
               paid directly to the financial institution providing Back-to-Back
               Loans and the proceeds of such Back-to-Back Loans made to
               Operating Subsidiaries in Argentina, Brazil, Peru and Uruguay (in
               the case of Uruguay, subject to applicable law) to be used to pay
               invoices issued by the Vendor under the Supply Agreement shall at
               all times be held in Blocked Accounts until disbursed to pay
               invoices owing to the Vendor under the Supply Agreement."; and

          (ii) adding after the first paragraph a second paragraph to read as
               follows:

               "Notwithstanding anything in the Supply Agreement to the
               contrary, the
<PAGE>

                Operating Subsidiaries shall use commercially reasonable efforts
                to use the proceeds of the Back-to-Back Loans to pay amounts
                owing under invoices issued or accepted by the Vendor pursuant
                to the Supply Agreement, and as specified in the related Notice
                of Borrowing, no later than the last day of the month in which
                such proceeds were received."

     (l)  Section 5.02(a) be amended as follows:

          (i)   insertion of a new clause (xii) containing the following:

                "Debt in the form of promissory notes issued to the selling
                stockholders in connection with the acquisition of INEA, S.A.,
                in a principal amount not to exceed $2,800,000, and";

          (ii)  the existing clause (xii) of Section 5.02(a) be renamed clause
                (xiii), and the word "(xi)" in the second line of the renamed
                clause (xiii) be deleted and replaced with the word "(xii)"; and

          (iii) clause (vi) be deleted in its entirety and replaced with the
                following:

                "(vi) Debt incurred in connection with the entering into by the
                Borrower or a Subsidiary thereof of Capitalized Leases in
                aggregate principal amount (including any such Debt incurred to
                refinance such Debt, as permitted by clause (xii) below) at any
                one time outstanding not exceeding (A) $100,000,000, with
                respect to any indefeasible rights of use of fiber and (B)
                $10,000,000, with respect to Capitalized Leases other than
                indefeasible rights of use of fiber,"

     (m)  Section 5.02(o) be deleted in its entirety and replaced with the
          following:

                "(o)  Gross PP&E.  Make or permit its Subsidiaries to make any
                      ----------
                Capital Expenditures that would cause the Gross PP&E of the
                Borrower and its Subsidiaries in any period set forth below to
                exceed the amount set forth below for such period.

                    Year Ending In            Amount
                    --------------            ------
                        12/31/99               $  115,000,000
                        12/31/00               $  325,564,000
                        12/31/01               $  466,052,000
                        12/31/02               $  587,322,000
                        12/31/03               $  716,357,000
                        12/31/04               $  867,065,000
                        12/31/05               $1,028,336,000
<PAGE>

                        12/31/06               $1,204,626,000

     (n)  Section 5.02(p) be deleted in its entirety and replaced with the
following:

               "(p) Lease Obligations. Create, incur, assume or suffer to exist,
                    -----------------
                    or permit any of its Subsidiaries to create, incur, assume
                    or suffer to exist:

                    (i)  any obligations as lessee for the rental or hire of
                    real or personal property of any kind under leases or
                    agreements to lease having a term of one year or more from
                    the date of execution thereof (other than Capitalized
                    Leases) that would cause the direct and contingent
                    liabilities of it and its Subsidiaries, on a Consolidated
                    basis, in respect of all such obligations in any period set
                    forth below to exceed the amount set forth below for such
                    period;

                    Year Ending In            Amount
                    --------------            ------
                      12/31/99                $ 7,500,000
                      12/31/00                $12,723,000
                      12/31/01                $18,283,000
                      12/31/02                $31,472,000
                      12/31/03                $42,835,000
                      12/31/04                $55,702,000
                      12/31/05                $69,685,000
                      12/31/06                $86,153,000

                    or

                    (ii) any obligations under Capitalized Leases that would
                    cause the direct and contingent liabilities of it and its
                    Subsidiaries, on a Consolidated basis, in respect of all
                    such obligations to exceed at any time (A) $100,000,000,
                    with respect to indefeasible rights of use of fiber and (B)
                    $10,000,000, with respect to Capitalized Leases other than
                    indefeasible rights of use of fiber."

     (o)  Section 5.04(a) be deleted in its entirety and replaced with the
     following:

               "(a) Revenue.  Shall not permit its Revenue for the period
                    -------
               beginning on the first day of the Borrower's fiscal year in which
               a date set forth below
<PAGE>

               occurs and ending on such date to be less than the amount
               corresponding to such date under the heading "Revenue" set forth
               below:

                    Date                        Revenue
                                                -------
              -----------------------------------------------
                 12/31/1999                    $      650,000
              -----------------------------------------------
                 03/31/2000                    $      519,000
               ----------------------------------------------
                 06/30/2000                    $    1,530,000
               ----------------------------------------------
                 09/30/2000                    $    3,165,000
               ----------------------------------------------
                 12/31/2000                    $    6,501,000
               ----------------------------------------------
                 03/31/2001                    $    4,739,000
               ----------------------------------------------
                 06/30/2001                    $   11,659,000
               ----------------------------------------------
                 09/30/2001                    $   21,275,000
               ----------------------------------------------
                 12/31/2001                    $   34,331,000
               ----------------------------------------------
                 03/31/2002                    $   21,066,000
               ----------------------------------------------
                 06/30/2002                    $   52,052,000
               ----------------------------------------------
                 09/30/2002                    $   96,045,000
               ----------------------------------------------
                 12/31/2002                    $  157,550,000
               ----------------------------------------------
                 03/31/2003                    $   69,264,000
               ----------------------------------------------
                 06/30/2003                    $  155,844,000
               ----------------------------------------------
                 09/30/2003                    $  249,350,000
               ----------------------------------------------
                 12/31/2003                    $  346,319,000
               ----------------------------------------------
                 03/31/2004                    $  117,257,000
               ----------------------------------------------
                 06/30/2004                    $  263,828,000
               ----------------------------------------------
                 09/30/2004                    $  422,124,000
               ----------------------------------------------
                 12/31/2004                    $  586,283,000
               ----------------------------------------------
                 03/31/2005                    $  177,795,000
               ----------------------------------------------
                 06/30/2005                    $  389,456,000
               ----------------------------------------------
                 09/30/2005                    $  618,049,000
               ----------------------------------------------
                 12/31/2005                    $  846,643,000
               ----------------------------------------------
                 03/31/2006                    $  239,958,000
               ----------------------------------------------
                 06/30/2006                    $  512,637,000
               ----------------------------------------------
                 09/30/2006                    $  796,223,000
               ----------------------------------------------
                 12/31/2006                    $1,090,717,000
               ----------------------------------------------

     (p)  Section 5.04(b) be deleted in its entirety and replaced with the
following:

               "(b) Total Voice Grade Equivalents. Shall not permit the total
               number of Voice Grade Equivalents of the Borrower and its
               Subsidiaries as of any date set forth below to be less than the
               number corresponding to such date under the heading "Number" set
               forth below:

                   Date                   Number
                   ----                   ------
                12/31/1999                 736
<PAGE>

                   Date                   Number
                   ----                   ------
                06/30/2000                    3,071
                12/31/2000                    9,040
                06/30/2001                   22,999
                12/31/2001                   50,859
                06/30/2002                  154,612
                12/31/2002                  251,548
                06/30/2003                  398,177
                12/31/2003                  544,806
                06/30/2004                  723,723
                12/31/2004                  902,639
                06/30/2005                1,074,614
                12/31/2005                1,246,590
                06/30/2006                1,428,556
                12/31/2006                1,610,522

     (q)  Section 5.04(c) be deleted in its entirety and replaced with the
following:

               "(c) EBITDA.  Shall not permit EBITDA for the four fiscal
               quarters of the Borrower immediately preceding any date set forth
               below to be less than the amount set forth under the heading
               "Amount" corresponding to such date:

                   Date                   Amount
                   -----                  ------
                12/31/1999               $ (33,400,000)
                06/30/2000               $ (65,781,000)
                12/31/2000               $ (99,000,000)
                06/30/2001               $(104,973,000)
                12/31/2001               $ (94,147,000)
                06/30/2002               $ (70,976,000)
                12/31/2002               $ (18,000,000)
                06/30/2003               $  63,982,000
                12/31/2003               $ 106,506,000
                06/30/2004               $ 174,099,000
                12/31/2004               $ 254,406,000
                06/30/2005               $ 332,296,000
                12/31/2005               $ 404,196,000
                06/30/2006               $ 482,098,000
                12/31/2006               $ 543,904,000
<PAGE>

     (r)  Section 5.04(d) be deleted in its entirety and replaced with the
following:
               "(d) Total Debt to Contributed Capital. Shall not permit the
                    ---------------------------------
               ratio of (i) Total Debt outstanding as of any date of
               determination to (ii) Contributed Capital as of such date of
               determination to be greater than the ratio corresponding to the
               date set forth below on or at any time during the 12 months
               immediately preceding such date:

                   Date                 Ratio
                   ----                 -----
                12/31/1999              4.50x
                12/31/2000              2.50x
                12/31/2001              2.50x
                12/31/2002              2.50x
                12/31/2003              2.50x
                12/31/2004              2.50x
                12/31/2005              2.50x
                12/31/2006              2.50x

     (s)  Section 5.04(e) be deleted in its entirety and replaced with the
following:

               "(e) Total Secured Debt to Contributed Capital. Shall not permit
                    -----------------------------------------
               the ratio of (i) Total Debt owed by the Borrower secured by
               Shared Liens outstanding as of any date of determination to (ii)
               Contributed Capital as of such date of determination to be
               greater than the ratio corresponding to the date set forth below
               on or immediately preceding such date:

                   Date                 Ratio
                   ----                 -----
                12/31/1999              2.00x
                06/30/2000              1.75x
                12/31/2000              1.75x
                06/30/2001              1.75x
                12/31/2001              1.75x
                06/30/2002              1.75x
                12/31/2002              1.75x
                06/30/2003              1.75x
                12/31/2003              1.75x
                06/30/2004              1.75x
                12/31/2004              1.75x
                06/30/2005              1.75x
                12/31/2005              1.75x
                06/30/2006              1.75x
                12/31/2006              1.75x
<PAGE>

     (t)  Section 5.04(f) be deleted in its entirety and replaced with the
following:
               "(f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
                    ------------------------------------------------
               permit the ratio of (i) Total Debt owed by the Borrower secured
               by Shared Liens outstanding at of any date of determination to
               (ii) EBITDA for the four consecutive fiscal quarters of the
               Borrower most recently ended on or prior to such date of
               determination to exceed the ratio corresponding to the date set
               forth below on or immediately proceeding such date of
               determination:

                   Date               Ratio
                   ----               -----
                12/31/2002             N/A
                06/30/2003             6.06x
                12/31/2003             3.90x
                06/30/2004             2.30x
                12/31/2004             1.30x
                06/30/2005             0.80x
                12/31/2005             0.40x
                06/30/2006             0.30x
                12/31/2006             0.20x

     (u)  Section 5.04(g) be deleted in its entirety and replaced with the
following:

               "(g) EBITDA to Total Cash Debt Service (Debt service coverage
                    --------------------------------------------------------
               ratio). Permit the ratio of (i) EBITDA for the four consecutive
               -----
               fiscal quarters ending on any of the dates set forth below to
               (ii) Total Cash Debt Service for the same period to be less than
               the ratio set forth below opposite such date:

                   Date               Ratio
                   ----               -----
                12/31/2002            N/A
                06/30/2003            0.58x
                12/31/2003            0.62x
                06/30/2004            1.05x
                12/31/2004            1.40x
                06/30/2005            1.50x
                12/31/2005            2.00x
                06/30/2006            3.00x
                12/31/2006            3.65x
<PAGE>

     (v)  Section 5.02(f) be deleted in its entirety and replaced with the
          following:
               "(f) Other Business.  Engage or permit any Subsidiary to engage,
          directly or indirectly, in any business other than the offering of
          data, voice or video services in the Territory, whether as a
          competitive access provider, a competitive local exchange carrier,
          Internet access provider or provider of enhanced Internet services."

     (w)  The signature page be amended by deleting the words "(plus undrawn
          Tranche A Commitments at the Tranche A Termination Date)" from the
          Tranche B Commitment language set forth opposite Lucent's name
          thereon.

3.   We hereby request that the Administrative Agent under each Credit Agreement
waive:

     (a)  until April 30, 2000 the requirements of Sections 5.01(k) and
          5.02(k)(viii)(B) of such Credit Agreement (and any Default pursuant to
          Section 6.01(c) caused by the failure to fulfill such requirements)
          with respect to Investments made by the Borrower and its Subsidiaries
          pursuant to Section 5.02(k)(viii)(B) in Tellink S.A. and Eritown,
          S.A.;

     (b)  with respect to any Borrowing under such Credit Agreement occurring
          prior to April 30, 2000, the requirements of the last sentence of
          Section 2.13;

     (c)  until April 30, 2000 any misrepresentation under Section 4.01(bb) of
          such Credit Agreement (and any Default pursuant to Section 6.01(b)
          caused by such misrepresentation) due to the existence of undisclosed
          taxes, levies, imposts, deductions, charges or withholdings imposed,
          levied or made by or in Uruguay or any political subdivision or taxing
          authority thereof or therein.

4.   We hereby request that Ericsson acknowledge that the requirements of
Section 3.03(h) and 3.03(i)(viii) (with respect to the Ericsson Credit
Agreement) and Lucent acknowledge that the requirements of Section 3.01(h) and
3.01(i)(viii) (with respect to the Lucent Credit Agreement) do not include the
execution and delivery of (i) a pledge of accounts receivable by Diveo do Brasil
Telecomunicacoes Ltda. (or the creation and perfection of any Liens contemplated
thereunder) or (ii) an agreement executed by Diginet Peru Sociedad Comercial de
Responsabilidad Limitada pledging, conveying or otherwise granting Liens upon
substantially all of its assets (or the creation and perfection of any Liens
contemplated thereunder). We hereby further request that each Administrative
Agent waive our obligation set forth in paragraph 4 of Waiver and Amendment No.
1 to the Credit Agreements dated as of January 14, 2000 with respect to the
documents described in clauses (i) and (ii) of the immediately preceding
sentence; we agree to execute and deliver such documents described prior to
April 30, 2000 or the obligation of the Lenders to make Advances under each
Credit Agreement shall terminate. We hereby further request that Lucent waive
our noncompliance with the requirement of Section 2.03(d) under the Lucent
Credit Agreement to pay the Tranche A Facility Fee on the Tranche A
<PAGE>

Effective Date, provided that we shall have made payment of the Tranche A
Facility Fee to Lucent on or before the date hereof.

5.   We hereby acknowledge and consent that Harris Corporation and its
Affiliates shall be considered an "Eligible Assignee" for purposes of each
Credit Agreement and Ericsson or Lucent, as the case may be, may assign to said
party a portion of its rights and obligations under such Credit Agreement in
accordance with Section 8.07 thereof.

6.   We hereby agree with Ericsson and Lucent that the amendments set forth in
items 1(m) through (u) (inclusive) and in items 2(m) through (u) (inclusive),
respectively, shall cease to be effective if, within 15 days after the date
hereof, the Parent fails to raise at least $125,000,000 of cash equity capital
in excess of the cash equity capital raised by it prior to the date hereof.

7.   This Waiver and Amendment No. 2 shall become effective as of the date first
above written when, and only when, on or before March 29, 2000, the
Administrative Agent under each Credit Agreement shall have received
counterparts of this Waiver and Amendment No. 2 executed by the Required Lenders
or, as to any of the Lenders, advice satisfactory to such Administrative Agent
that such Lender has executed this Waiver and Amendment No. 2.  With respect to
each Credit Agreement, this Waiver and Amendment No. 2 is subject to the
provisions of Section 8.01 of such Credit Agreement.

8.   Each Credit Agreement, except to the extent of the waivers and amendments
specifically provided above, is and shall continue to be in full force and
effect and is hereby in all respects ratified and confirmed.  The execution,
delivery and effectiveness of this Waiver and Amendment No. 2 shall not, except
as expressly provided herein, operate as a waiver of any right, power or remedy
of any Party under any Credit Agreement, nor constitute a waiver of any
provision of any Credit Agreement.

9.   On and after the effectiveness of this Waiver and Amendment No. 2, each
reference in each Credit Agreement to "this Agreement", "hereunder", "hereof" or
words of like import referring to such Credit Agreement, and each reference in
each of the other Loan Documents relating to such Credit Agreement to "the
Credit Agreement", "thereunder", "thereof" or words of like import referring to
such Credit Agreement, shall mean and be a reference to such Credit Agreement,
as amended by this Waiver and Amendment No. 2.

10.  If you agree to the terms and provisions of this Waiver and Amendment No.
2, please evidence such agreement by executing and returning at least two
counterparts of this Waiver and Amendment No. 2 to each of (i) Nicole Jerabek at
Shearman & Sterling, 599 Lexington Avenue, New York, NY 10022 (Telecopier: (212)
848-7179; Telephone: (212) 848-4835) and (ii) George Schoen at Cravath, Swaine &
Moore, 825 Eighth Avenue, New York, NY 10019 (Telecopier: (212) 474-3700;
Telephone (212) 474-1740).

11.  This Waiver and Amendment No. 2 may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Delivery of an executed
counterpart of a signature page to this Waiver and
<PAGE>

Amendment No. 2 by telecopier shall be effective as delivery of a manually
executed counterpart of this Waiver and Amendment No. 2.

12.  This Waiver and Amendment No. 2 shall be governed by, and construed in
accordance with, the laws of the State of New York.

                              DIVEO, INC.

                              By ______________________________________
                                 Name:
                                 Title:

Agreed as of the date first above written:

ERICSSON CREDIT AB

By________________________
  Name:
  Title:

LUCENT TECHNOLOGIES INC.

By________________________
  Name:
  Title:
<PAGE>

                                    CONSENT

          EACH OF THE UNDERSIGNED, as of the date of the foregoing Amendment,
consents to such Amendment and confirms and agrees that notwithstanding the
effectiveness of such Amendment and any prior amendments to the Credit
Agreement, the Guaranties and each other Loan Document to which it is a party
are, and shall continue to be, in full force and effect and are hereby ratified
and confirmed in all respects, except that, on and after the effectiveness of
such Amendment, each reference in each such Loan Document to the "Credit
Agreement", "thereunder", "thereof" or words of like import shall mean and be a
reference to the Credit Agreement, as amended by such Amendment and all prior
amendments thereto.

DIGINET ARGENTINA, INC.                       DIGINET BRAZIL, INC.

By_________________________                   By_________________________
Title:                                          Title:

DIGINET COLOMBIA, INC.                        DIGINET PANAMA INC.

By_________________________                   By_________________________
 Title:                                         Title:

DIGINET VENTURES/MEGALINK, INC.               DIGINET PERU INC.

By_________________________                   By_________________________
 Title:                                       Title:
<PAGE>

DIGINET ARGENTINA S.A.                        DIGINET COMUTACAO DIGITAL LTDA.

By_________________________                   By_________________________
 Title:                                         Title:

DIVEO DO BRASIL                               DIGINET TELECOMUNICACIONES DE
TELECOMUNICACOES LTDA.                        PANAMA S.A.

By_________________________                   By_________________________
 Title:                                         Title:

DIGINET PERU SOCIEDAD COMERCIAL DE
RESPONSIBILIDA LIMITADA

By_________________________
 Title:<PAGE>
                                                                    Exhibit 10.2

                                                                  EXECUTION COPY

                                U.S. $300,000,000

                      AMENDED AND RESTATED CREDIT AGREEMENT

                          dated as of November 24, 1999

                                      among

                                  DIVEO, INC.,
                                  as Borrower,

                            the LENDERS party hereto,

                                       and

                               ERICSSON CREDIT AB,
                             as Administrative Agent
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                            Page
<S>                                                                                                          <C>
ARTICLE I         DEFINITIONS AND ACCOUNTING TERMS                                                            2
     SECTION 1.01.  Certain Defined Terms                                                                     2
     SECTION 1.02.  Computation of Time Periods                                                              27
     SECTION 1.03.  Accounting Terms                                                                         27
ARTICLE II        AMOUNTS AND TERMS OF THE ADVANCES                                                          27
     SECTION 2.01.  The Advances                                                                             27
     SECTION 2.02.  Making the Advances                                                                      28
     SECTION 2.03.  Fees                                                                                     30
     SECTION 2.04.  Termination or Reduction of the Commitments                                              31
     SECTION 2.05.  Repayment of Advances                                                                    31
     SECTION 2.06.  Interest                                                                                 32
     SECTION 2.07.  Interest Rate Determination                                                              33
     SECTION 2.08.  Prepayments                                                                              33
     SECTION 2.09.  Increased Costs, Etc.                                                                    36
     SECTION 2.10.  Payments and Computations                                                                38
     SECTION 2.11.  Taxes                                                                                    40
     SECTION 2.12.  Sharing of Payments, Etc.                                                                42
     SECTION 2.13.  Use of Proceeds                                                                          42
     SECTION 2.14.  First Eurodollar Method and Second Eurodollar Method                                     43
     SECTION 2.15.  Redistribution of Payments                                                               43
ARTICLE III       CONDITIONS TO EFFECTIVENESS AND LENDING                                                    44
     SECTION 3.01.  Conditions Precedent to Effectiveness of Section 2.01                                    44
     SECTION 3.02.  Conditions Precedent to Each Borrowing                                                   44
     SECTION 3.03.  Conditions Precedent to Effectiveness of this Agreement                                  45
ARTICLE IV        REPRESENTATIONS AND WARRANTIES                                                             50
     SECTION 4.01.  Representations and Warranties of the Borrower                                           50
ARTICLE V         COVENANTS OF THE BORROWER                                                                  58
     SECTION 5.01.  Affirmative Covenants                                                                    58
     SECTION 5.02.  Negative Covenants                                                                       63
     SECTION 5.03.  Reporting Requirements                                                                   73
     SECTION 5.04.  Operational and Financial Covenants                                                      77
ARTICLE VI        EVENTS OF DEFAULT                                                                          81
     SECTION 6.01.  Events of Default                                                                        81
ARTICLE VII       THE ADMINISTRATIVE AGENT                                                                   87
     SECTION 7.01.  Authorization and Action                                                                 87
     SECTION 7.02.  Agent's Reliance, Etc.                                                                   87
     SECTION 7.03.  Agent and Affiliates                                                                     88
     SECTION 7.04.  Lender Credit Decision                                                                   88
     SECTION 7.05.  Indemnification                                                                          88
     SECTION 7.06.  Successor Agent                                                                          89
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                                          <C>
ARTICLE VIII      MISCELLANEOUS                                                                              89
     SECTION 8.01.  Amendments, Etc.                                                                         89
     SECTION 8.02.  Notices, Etc.                                                                            90
     SECTION 8.03.  No Waiver; Remedies                                                                      91
     SECTION 8.04.  Costs and Expenses; Indemnification                                                      91
     SECTION 8.05.  Right of Set-off                                                                         93
     SECTION 8.06.  Binding Effect                                                                           93
     SECTION 8.07.  Assignments and Participations                                                           93
     SECTION 8.08.  Confidentiality                                                                          96
     SECTION 8.09.  Governing Law                                                                            96
     SECTION 8.10.  Execution in Counterparts                                                                96
     SECTION 8.11.  Jurisdiction, Judgment Currency, Etc.                                                    97
     SECTION 8.12.  Waiver of Jury Trial                                                                     98
     SECTION 8.13.  Intercreditor Arrangements                                                               98
     SECTION 8.14. Intercreditor Agreement; Amendments to Lucent Credit Agreement.                           98
</TABLE>
<PAGE>

                                       iii

                                                                            Page

SCHEDULES

Schedule 3.01(a)(i)  Disclosed Litigation
Schedule 4.01(b)       Subsidiaries
Schedule 4.01(f)       Authorizations, Approvals, Notices and Filings
Schedule 4.01(o)       Liens
Schedule 4.01(t)       Leases of Real Property
Schedule 4.01(v)       Existing Debt
Schedule 4.01(w)       Investments
Schedule 4.01(x)       Material Contracts
Schedule 4.01(y)       Licenses
Schedule 4.01(z)       Insurance Policies
Schedule 4.01(dd)      Plans, Multiemployer Plans and Welfare Plans
Schedule 4.01(ii)      Material Licenses
Schedule 5.02(u)       Stock Purchase Agreements

EXHIBITS

Exhibit A     Form of Note
Exhibit B     Form of Notice of Borrowing
Exhibit C     Form of Assignment and Acceptance
Exhibit D-1   Form of Operating Subsidiary Guaranty
Exhibit D-2   Form of Intermediate Holding Company Subsidiary Guaranty
Exhibit E     Terms of Intercompany Mirror Subordinated Debt
Exhibit F     Form of Intercompany Mirror Subordinated Debt Subordination
               Agreement
Exhibit G     Form of Subordination Agreement
Exhibit H     Form of Blocked Account Letter Agreement
<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

     AMENDED AND RESTATED CREDIT AGREEMENT dated as of November 24, 1999 among
DIVEO, INC., a Delaware corporation (the "Borrower"), ERICSSON CREDIT AB (the
"Initial Lender") and ERICSSON CREDIT AB as administrative agent (the
"Administrative Agent") for the Lenders (as hereinafter defined).

                                    RECITALS

     The Borrower has been formed in order to plan, construct, operate and
maintain digital wireless local loop voice and data networks (each, a "Network")
in Mexico, Central America and South America (the "Territory") (the planning,
construction, operation and maintenance of the Networks being the "Project").

     The Borrower entered into the Relationship Agreement dated as of June 25,
1999 with LM Ericsson Telefonaktiebolaget (together with any of its Subsidiaries
providing services pursuant to the Relationship Agreement or providing financing
hereunder, "Vendor") (the "Relationship Agreement", and together with any
Specific Agreements (as defined therein), in each case as amended, modified or
supplemented from time to time, the "Supply Agreement") pursuant to which
Subsidiaries of the Borrower will purchase from Subsidiaries of the Vendor, and
Subsidiaries of the Vendor will sell to Subsidiaries of the Borrower, certain
telecommunications equipment, software, engineering and other services in
connection with the Project. In connection with the execution of the Supply
Agreement, the Borrower and the Vendor entered into the Credit Agreement dated
as of June 25, 1999 (the "Original Credit Agreement"), pursuant to which the
Vendor as Initial Lender would provide financing for purchases made by
Subsidiaries of the Borrower pursuant to the Supply Agreement.

     In connection with an amendment to the Supply Agreement, the Borrower and
the Lenders desire to amend and restate the Original Credit Agreement in its
entirety in accordance with the terms hereof (the "Agreement" or "this
Agreement"). Pursuant to this Agreement, the Borrower has requested that (i) the
Lenders extend credit to it from time to time in order to finance certain costs
of the Project, including, among other things, purchases under the Supply
Agreement and (ii) the terms and conditions of the Original Credit Agreement
with respect to credit extended by the Lenders thereunder prior to the date
hereof be superseded by the terms and conditions of this Agreement with respect
to such credit. The Lenders have agreed to extend credit to the Borrower from
time to time under the terms and conditions of this Agreement, and the Lenders
have agreed that the terms and conditions of this Agreement shall supersede the
terms and conditions of the Original Credit Agreement with respect to credit
extended thereunder prior to the date of effectiveness of this Agreement
pursuant to Section 3.03.
<PAGE>

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein, the parties hereto hereby agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Administrative Agent" has the meaning specified in the preamble to
     this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent at SEB Bank
     with its office at Telefonvagen 30, SE 126 25, Stockholm, Sweden, Account
     No. 55578207286, Attention: Erik Ramstrom, Re: Diginet.

          "Advance" means a Tranche A Advance or a Tranche B Advance.

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person. For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Stock of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Stock, by contract or otherwise.

          "Agent" means the Administrative Agent or the Collateral Agent.

          "Agreement Currency" has the meaning set forth in Section 8.11(c)(ii).

          "Amendment Effective Date" has the meaning specified in Section 3.03.

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in substantially the form of Exhibit C.

          "Back-to-Back Loans" means, with respect to any Advance, any of the
     following:

               (a) any loan made by the Borrower to an Intermediate Holding
          Company Subsidiary other than Comutacao Digital Ltda.;
<PAGE>

                                       3

               (b) any loan made by the Borrower to a financial institution;

               (c) any Investment made by the Borrower in a financial
          institution;

               provided that, in the case of (a), (b) or (c), such loan or
               Investment:

                    (i) was made from the proceeds of such Advance on
               substantially the economic terms of such Advance,

                    (ii) shall have been pledged by the Borrower to the
               Collateral Agent, and

                    (iii) the proceeds of which shall have been used by the
               recipient thereof to make a loan described in subsection (d)
               below; or

               (d) a loan made by the recipient of a Back-to-Back Loan described
          in subsection (a), (b) or (c) above with the proceeds of such
          Back-to-Back Loan or by the Borrower from the proceeds of Advances, in
          either case to an Operating Subsidiary:

                    (i) on substantially the economic terms of such related
               Back-to-Back Loan or Advance, as applicable,

                    (ii) that shall have been pledged by the lender (if the
               Borrower or an Intermediate Holding Company Subsidiary) to the
               Collateral Agent, and

                    (iii) the proceeds of which shall have been used by such an
               Operating Subsidiary for purposes specified in Section 2.13(a).

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the
     higher of:

               (a) the average of the rates of interest announced publicly by
          the Reference Banks in New York, New York, from time to time, as such
          banks' base rates, and

               (b) 1/2 of 1% per annum above the Federal Funds Rate.

          "Blocked Account" means an account of an Operating Subsidiary that is
     established for the purpose of transmitting proceeds of Advances that are
     to be applied to
<PAGE>

                                        4

     pay invoices under the Supply Agreement and is subject to a Blocked Account
     Letter Agreement or a written agreement with the financial institution with
     whom such proceeds are deposited acknowledging substantially similar
     limitations on the uses of such proceeds.

          "Blocked Account Letter Agreement" means an account agreement
     substantially in the form of Exhibit H attached hereto.

          "Borrower" has the meaning specified in the preamble to this
     Agreement.

          "Borrower Security Agreement" means, collectively, any security
     agreements of the Borrower in favor of the Collateral Agent and the Lenders
     entered into pursuant to Section 3.01(i)(viii), as amended, modified or
     supplemented from time to time.

          "Borrowing" means a borrowing consisting of Advances of the same
     tranche made on the same day by the Lenders.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close, with respect to any date of Borrowing, in
     New York City, U.S.A. and Stockholm, Sweden, and otherwise in New York
     City, U.S.A.; Sao Paulo, Brazil; Buenos Aires, Argentina; Santa Fe de
     Bogota, Colombia; Panama City, Panama; Lima, Peru; and Stockholm, Sweden
     and days on which dealings are carried on in the London interbank market.

          "Capital Assets" means, with respect to any Person and at any date,
     all equipment, fixed assets and real property or improvements of such
     Person, or replacements or substitutions therefor or additions thereto,
     that have been or should be, in accordance with GAAP for such Person,
     reflected as additions to property, plant or equipment on the balance sheet
     of such Person at such date or that have a useful life of more than one
     year.

          "Capital Expenditures" means, for any period, all expenditures that
     have been or should be, in accordance with GAAP, reflected as capital
     expenditures to such period, less any indefeasible rights of use of fiber
     subject to Capitalized Leases.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Cash Equivalents" means:

               (a) as to the Borrower, any Intermediate Holding Company
          Subsidiary of the Borrower and any Operating Subsidiary of the
          Borrower subject to the jurisdiction of the United States or any state
          or district thereof, any of the
<PAGE>

                                       5

          following, to the extent owned by the Borrower or such Intermediate
          Holding Company Subsidiary free and clear of all Liens:

                    (i) readily marketable direct obligations of the Government
               of the United States or any agency or instrumentality thereof or
               obligations unconditionally guaranteed by the full faith and
               credit of the Government of the United States having a maturity
               of not greater than 720 days from the date of acquisition
               thereof;

                    (ii) insured certificates of deposit of or time deposits
               with any commercial bank having a maturity of not greater than
               720 days from the date of acquisition thereof that:

                         (A) is a Lender or a member of the Federal Reserve
                    System,

                         (B) issues (or the parent of which issues) commercial
                    paper rated as described in clause (iii),

                         (C) is organized under the laws of the United States or
                    any State thereof, and

                         (D) has combined capital and surplus of at least
                    $500,000,000;

                    (iii) commercial paper in any amount at any time having a
               maturity of not greater than 720 days from the date of
               acquisition thereof, issued by any corporation organized under
               the laws of any State of the United States and rated at least
               "Prime-1" (or the then equivalent grade) by Moody's Investors
               Service, Inc. or "A-1" (or the then equivalent grade) by Standard
               & Poor's Corporation; or

                    (iv) mutual funds issued by an entity organized in the
               United States whose investments are comprised of items described
               in clauses (i) to (iii) above and having a cash to assets ratio
               of 10% or more; and

               (b) as to any Operating Subsidiary subject to the jurisdiction of
          a government other than that of the United States of any state or
          district thereof, any of the following, to the extent owned by the
          relevant Subsidiary free and clear of all Liens and having a maturity
          of not greater than 360 days from the date of acquisition thereof:
<PAGE>

                                       6

                    (i) certificates of deposit or any other fixed-rate
               instrument issued by (A) major banks organized under the laws of
               such jurisdiction or (B) branches of international banks located
               in such jurisdiction, in each case having at the date of any
               investment combined capital and surplus and retained earnings of
               not less than U.S.$500,000,000 ("Permitted Banks");

                    (ii) money-market funds managed by a Permitted Bank;

                    (iii) foreign-currency-indexed financial instruments, such
               as Government bonds, issued by such jurisdiction, certificates of
               deposit or any other fixed-rate instrument issued by an
               investment fund, managed by a Permitted Bank; or

                    (iv) direct obligations of such jurisdiction, the central
               bank of the country of such jurisdiction or any agency or
               instrumentality the obligations of which have the full faith and
               credit of the government of such jurisdiction.

          "Change of Control" means the occurrence of any of the following:

               (a) any Competitor shall have acquired beneficial ownership
          (within the meaning of Rule 13d-3 of the Securities and Exchange
          Commission under the Securities Exchange Act of 1934), directly or
          indirectly, of Voting Stock of the Parent (or other securities
          convertible into such Voting Stock) representing 5% or more of the
          combined voting power of all Voting Stock of the Parent;

               (b) during any period of up to 24 consecutive months, commencing
          on or after June 25, 1999, designees who at the beginning of such
          24-month period were directors of the Borrower shall cease for any
          reason to constitute a majority of the board of directors of the
          Borrower;

               (c) any Competitor or two or more Competitors acting in concert
          shall have acquired by contract or otherwise, or shall have entered
          into a contract or arrangement that, upon consummation, will result in
          its or their acquisition of the power to exercise, directly or
          indirectly, a controlling influence over the management or policies of
          the Parent or control over Voting Stock of the Parent (or other
          securities convertible into such Voting Stock) representing 5% or more
          of the combined voting power of all Voting Stock of the Parent;

               (d) the Parent shall cease to own 100% of the Equity Interests in
          the Borrower; or
<PAGE>

                                       7

               (e) any Person or two or more Persons acting in concert shall
          have acquired, or shall have entered into a contract or arrangement
          that, upon consummation, will result in its or their acquisition of,
          beneficial ownership (within the meaning of Rule 13d-3 of the
          Securities and Exchange Commission under the Securities Exchange Act
          of 1934), directly or indirectly, of Voting Stock of the Parent (or
          other securities convertible into such Voting Stock) representing 50%
          or more of the combined voting power of all Voting Stock of the
          Parent.

          "Collateral" means all "Collateral" referred to in the Security
     Agreements and all other property that is subject to any Lien in favor of
     the Collateral Agent or the Lenders.

          "Collateral Agent" means Citibank, N.A. and its successors as
     collateral agent under the Intercreditor Agreement.

          "Collateral Agent Letter" means the letter agreement between the
     Collateral Agent and the Borrower referred to in Section 3.03(f).

          "Commitment" means a Tranche A Commitment or a Tranche B Commitment.

          "Competitor" means any Person that (a) has total annual revenues in
     excess of $1,000,000,000 and derives 10% or more of its gross revenues or
     profits or (b) has a division or Subsidiary has total annual revenues in
     excess of $100,000,000 and derives 10% or more of its gross revenues or
     profits, from the manufacture of telecommunications or data communications
     equipment or from another activity from which the Vendor or an Affiliate of
     the Vendor derives more than 10% of its gross revenues or profits, or an
     Affiliate of any such Person.

          "Compliance Certificate" has the meaning specified in Section 5.03(b).

          "Confidential Information" means information that the Borrower
     furnishes to the Administrative Agent or any Lender in a writing designated
     as confidential, but does not include any such information that is or
     becomes generally available to the public other than as a result of a
     violation of Section 8.08 or that is or becomes available to the
     Administrative Agent or such Lender from a source other than the Borrower.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Contributed Capital" means at any date, the aggregate amount of cash
     equity capital contributed to the Borrower by its shareholders prior to
     such date less any reductions in equity capital resulting from
     distributions made by the Borrower in excess of the Borrower's retained
     earnings.
<PAGE>

                                       8

          "Core Territories" means Argentina, Brazil, Colombia, Panama and Peru.

          "Current Assets" of any Person at any date means (a) all assets of
     such Person that would, in accordance with GAAP, at such date, be
     classified as current assets of a company conducting a business the same as
     or similar to that of such Person, after deducting adequate reserves in
     each case in which a reserve is proper in accordance with GAAP and (b)
     value added tax credits accrued within one year prior to such date.

          "Current Liabilities" of any Person means at any date:

               (a) all Debt of such Person that by its terms is payable on
          demand or matures within one year after such date (excluding any Debt
          renewable or extendable, at the option of such Person, to a date more
          than one year from such date or arising under a revolving credit or
          similar agreement that obligates the lender or lenders to extend
          credit during a period of more than one year from such date), and

               (b) all other liabilities of such Person that in accordance with
          GAAP would be classified as current liabilities of such Person.

          "Customer Premise Equipment" means any equipment that is (a) owned by
     an Operating Subsidiary, (b) located at the office or other premises owned
     by a customer or leased by a customer from a third party independent from
     the Borrower and its Affiliates, (c) sold, leased or transferred by such
     Operating Subsidiary to such customer, or to a third party lessor
     (independent from the Borrower and its Affiliates) of such equipment to
     such customer, in each case on which customer's premises such equipment is
     located and (d) of any of the following types: routers, firewalls,
     integrated access devices, radio systems, tdm multiplexors, atm
     multiplexors, PBX, server computers, LAN hubs, DSL multiplexors or protocol
     converters.

          "Debt" of any Person means, without duplication:

               (a) all indebtedness of such Person for borrowed money,

               (b) all Obligations of such Person for the deferred purchase
          price of property or services (other than trade payables not overdue
          by more than 60 days incurred in the ordinary course of such Person's
          business),

               (c) all Obligations of such Person evidenced by notes, bonds,
          debentures or other similar instruments,
<PAGE>

                                       9

               (d) all Obligations of such Person created or arising under any
          conditional sale or other title retention agreement with respect to
          property acquired by such Person (even though the rights and remedies
          of the seller or lender under such agreement in the event of default
          are limited to repossession or sale of such property),

               (e) all Obligations of such Person as lessee under Capitalized
          Leases,

               (f) all Obligations, contingent or otherwise, of such Person
          under acceptance, letter of credit or similar facilities,

               (g) all Obligations of such Person in respect of Hedge
          Agreements,

               (h) all Debt of others referred to in clauses (a) through (g)
          above or clause (i) below guaranteed directly or indirectly in any
          manner by such Person, or in effect guaranteed directly or indirectly
          by such Person through an agreement (A) to pay or purchase such Debt
          or to advance or supply funds for the payment or purchase of such
          Debt, (B) to purchase, sell or lease (as lessee or lessor) property,
          or to purchase or sell services, primarily for the purpose of enabling
          the debtor to make payment of such Debt or to assure the holder of
          such Debt against loss or (C) the primary purpose of which is to
          assure a creditor of such Person against loss, and

               (i) all Debt referred to in clauses (a) through (g) above secured
          by (or for which the holder of such Debt has an existing right,
          contingent or otherwise, to be secured by) any Lien on property
          (including without limitation accounts and contract rights) owned by
          such Person, even though such Person has not assumed or become liable
          for the payment of such Debt.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Disclosed Litigation" has the meaning specified in Section 3.01(a).

          "EBITDA" means for any period:

               (a) Net Income for such period (excluding, to the extent
          otherwise included in Net Income, Consolidated interest income), plus

               (b) the following, in each case without duplication and to the
          extent deducted from Revenue in accordance with GAAP in determining
          Net Income for such period:
<PAGE>

                                       10

                    (i) consolidated interest expense of the Borrower and its
               Subsidiaries for such period,

                    (ii) taxes based upon Net Income,

                    (iii) depreciation and amortization, and

                    (iv) other non-cash charges.

          "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender;
     (c) a commercial bank organized under the laws of the United States, or any
     State thereof, and having total assets in excess of $1,000,000,000; (d) a
     savings and loan association or savings bank organized under the laws of
     the United States, or any State thereof, and having total assets in excess
     of $1,000,000,000; (e) a commercial bank organized under the laws of any
     other country that is a member of the OECD or has concluded special lending
     arrangements with the International Monetary Fund associated with its
     General Arrangements to Borrow, or a political subdivision of any such
     country, and having total assets in excess of $1,000,000,000, so long as
     such bank is acting through a branch or agency located in the United
     States; (f) the central bank of any country that is a member of the OECD;
     and (g) a finance company, insurance company or other financial
     institution, or fund (whether a corporation, partnership, trust or other
     entity) that is engaged in making, purchasing or otherwise investing in
     commercial loans in the ordinary course of its business and having total
     assets (in the case of a fund, together with any other funds managed by the
     same fund manager) in excess of $1,000,000,000; provided that no Loan Party
     or Affiliate of a Loan Party shall qualify as an Eligible Assignee under
     this definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, Environmental
     Permit or Hazardous Materials or arising from alleged injury or threat of
     injury to health, safety or the environment, including without limitation
     (a) by any governmental or regulatory authority for enforcement, cleanup,
     removal, response, remedial or other actions or damages and (b) by any
     governmental or regulatory authority or any third party for damages,
     contribution, indemnification, cost recovery, compensation or injunctive
     relief.

          "Environmental Law" means any federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, judgment, decree or
     judicial or agency interpretation, policy or guidance relating to pollution
     or protection of the environment, health, safety or natural resources,
     including without limitation those relating to the use,
<PAGE>

                                       11

     handling, transportation, treatment, storage, disposal, release or
     discharge of Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock or contribution of (or other ownership or profit interests
     in) such Person, warrants, options or other rights for the purchase or
     other acquisition from such Person of shares of capital stock of (or other
     ownership or profit interests in) such Person, securities convertible into
     or exchangeable for shares of capital stock of (or other ownership or
     profit interests in) such Person or warrants, rights or options for the
     purchase or other acquisition from such Person of such shares (or such
     other interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member or trust interests
     therein), whether voting or nonvoting, and whether or not such shares,
     warrants, options, rights or other interests are authorized or otherwise
     existing on any date of determination.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code.

          "ERISA Event" means (a) (i) the occurrence of a reportable event,
     within the meaning of Section 4043 of ERISA, with respect to any Plan
     unless the 30-day notice requirement with respect to such event has been
     waived by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
     apply with respect to a contributing sponsor, as defined in Section
     4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
     (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected
     to occur with respect to such Plan within the following 30 days; (b) the
     application for a minimum funding waiver with respect to a Plan; (c) the
     provision by the administrator of any Plan of a notice of intent to
     terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any
     such notice with respect to a plan amendment referred to in Section 4041(e)
     of ERISA); (d) the cessation of operations at a facility of any Loan Party
     or any ERISA Affiliate in the circumstances described in Section 4062(e) of
     ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a
     Multiple Employer Plan during a plan year for which it was a substantial
     employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for
     imposition of a lien under Section 302(f) of ERISA shall have been met with
     respect to any Plan; (g) the adoption of an amendment to a Plan requiring
     the provision of security to such
<PAGE>

                                       12

     Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC
     of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or
     the occurrence of any event or condition described in Section 4042 of ERISA
     that constitutes grounds for the termination of, or the appointment of a
     trustee to administer, such Plan.

          "Eurocurrency Liabilities" has the meaning assigned to that term in
     Regulation D of the Board of Governors of the Federal Reserve System, as in
     effect from time to time.

          "Eurodollar Rate" means, for any Interest Period for each Advance
     comprising part of the same Borrowing, an interest rate per annum equal to
     the rate per annum obtained by dividing

               (a) LIBOR for such Interest Period by

               (b) a percentage equal to 100% minus the Eurodollar Rate Reserve
          Percentage for such Interest Period.

     The Eurodollar Rate for any Interest Period for each Advance comprising
     part of the same Borrowing shall be determined by the Administrative Agent,
     subject, however, to the provisions of Section 2.07.

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
     Advances comprising part of the same Borrowing means the reserve percentage
     applicable two Business Days before the first day of such Interest Period
     under regulations issued from time to time by the Board of Governors of the
     Federal Reserve System (or any successor) for determining the maximum
     reserve requirement (including without limitation any emergency,
     supplemental or other marginal reserve requirement) for a member bank of
     the Federal Reserve System in New York City with respect to liabilities or
     assets consisting of or including Eurocurrency Liabilities having a term
     equal to such Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.

          "Excess Cash Flow" means for any period the positive amount, if any,
     of:

               (a) EBITDA for such period, minus

               (b) the sum of the following, to the extent paid in cash by the
          Borrower and its Subsidiaries during such period:

                    (i) scheduled debt service,
<PAGE>

                                       13

                    (ii) taxes,

                    (iii) permitted Capital Expenditures (except for any capital
               expenditures that have been financed with Debt incurred during
               such period),

                    (iv) payments for spectrum rights other than payments in
               advance of the date due, and

                    (v) extraordinary cash charges,

               (c) plus any decrease or minus any increase, as the case may be,
          in Working Capital Investments between the first and last day of such
          period.

          "Existing Debt" means Debt of the Borrower and its Subsidiaries
     outstanding as of June 25, 1999.

          "Extraordinary Receipt" means any cash received by or paid to or for
     the account of any Person not in the ordinary course of business,
     including, without limitation, tax refunds, pension plan reversions,
     proceeds of insurance (other than proceeds of business interruption
     insurance to the extent such proceeds constitute compensation for lost
     earnings), condemnation awards (and payments in lieu thereof) and indemnity
     payments.

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal-funds transactions with members
     of the Federal Reserve System arranged by Federal-funds brokers, as
     published for such day (or, if such day is not a Business Day, for the
     next-preceding Business Day) by the Federal Reserve Bank of New York, or,
     if such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day on such transactions received by the
     Administrative Agent from three Federal-funds brokers of recognized
     standing selected by it.

          "Federal Reserve System" means the system established by the Federal
     Reserve Act of 1913 to regulate the U.S. monetary and banking system.

          "First Eurodollar Method" means the terms and provisions of this
     Agreement applicable to Advances when the First Eurodollar Method is to be
     applied pursuant to Section 2.14.

          "GAAP" has the meaning specified in Section 1.03.
<PAGE>

                                       14

          "Governmental Authority" means any nation or government, any state or
     other political subdivision thereof and any entity exercising executive,
     legislative, judicial, regulatory or administrative functions of or
     pertaining to government.

          "Gross PP&E" means at any date, Consolidated gross plant, property and
     equipment of the Borrower and its Subsidiaries less any indefeasible rights
     of use of fiber subject to Capitalized Leases, in each case as of such date
     and as determined in accordance with GAAP.

          "Guarantor" means any Subsidiary of the Borrower that executes a
     Guaranty.

          "Guaranty" means a guaranty or reaffirmation issued in favor of the
     Administrative Agent and the Lenders (i) in the case of any Operating
     Subsidiary, in substantially in the form of Exhibit D-1, (ii) in the case
     of any Intermediate Holding Company, in substantially the form of Exhibit
     D-2 or (iii) in the case of any Intermediate Holding Company Subsidiary or
     Operating Subsidiary that entered into a Guaranty prior to the Amendment
     Effective Date or shall enter into a Guaranty prior to the date of
     effectiveness of any subsequent amendment requiring a reaffirmation of such
     guaranty, a reaffirmation of guaranty by each such Subsidiary in
     substantially the form of Exhibit D-3.

          "Hazardous Materials" means:

               (a) petroleum and petroleum products, byproducts or breakdown
          products, radioactive materials, asbestos-containing materials,
          polychlorinated biphenyls and radon gas, and

               (b) any other chemicals, materials or substances designated,
          classified or regulated as hazardous or toxic or as a pollutant or
          contaminant under any Environmental Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other similar agreements.

          "Indemnified Costs" has the meaning specified in Section 7.05.

          "Initial Lender" has the meaning specified in the preamble to this
     Agreement.

          "Insignificant Subsidiary" means any Subsidiary of the Borrower having
     assets with a value not exceeding $500,000 or in which no more than
     $500,000 has been invested.
<PAGE>

                                       15

          "Intercompany Mirror Subordinated Debt" means unsecured Debt owing by
     the Borrower to the Parent that:

               (a) is loaned to the Borrower by the Parent and designated by the
          Borrower as representing proceeds from the incurrence of Debt (the
          "Parent Mirror Debt") issued by the Parent;

               (b) has an interest rate not exceeding the lesser of (i) the
          interest rate applicable to the related Parent Mirror Debt and (ii) a
          rate of 20% per annum;

               (c) does not provide for any payment of principal prior to the
          final scheduled maturity date for the last repayment of Advances of
          either Tranche; and

               (d) has defaults, covenants and other provisions that comply with
          Exhibit E and subordination terms substantially in the form of Exhibit
          F.

          "Intercreditor Agreement" means the amended and restated Intercreditor
     Agreement entered into pursuant to Section 3.03(e) among the Collateral
     Agent, the Administrative Agent, the Initial Lender, Lucent Technologies,
     Inc. as administrative agent and as initial lender pursuant to the Lucent
     Credit Agreement and the other administrative agents and lenders from time
     to time party thereto, as amended, amended and restated, supplemented or
     otherwise modified from time to time.

          "Interest Period" means:

               (a) when the First Eurodollar Method is applicable, for each
          Advance comprising part of the same Borrowing, the period commencing
          on the date of the initial Advance and ending six months thereafter
          and, thereafter, each subsequent six-month period commencing on the
          last day of the immediately preceding Interest Period and ending on
          the last day of such period; and

               (b) when the Second Eurodollar Method is applicable, for each
          Advance comprising part of the same Borrowing, the period commencing
          on the date of such Advance and ending six months thereafter and,
          thereafter, each subsequent six-month period commencing on the last
          day of the immediately preceding Interest Period and ending on the
          last day of such period;

          provided, in each case, that:

               (a) in the event the last day of the Interest Period immediately
          preceding the Tranche A Termination Date would occur on a day other
          than the
<PAGE>

                                       16

          Tranche A Termination Date, the last day of such Interest Period shall
          be shortened to occur on the Tranche A Termination Date;

               (b) whenever the last day of any Interest Period would otherwise
          occur on a day other than a Business Day, the last day of such
          Interest Period shall be extended to occur on the next-succeeding
          Business Day; provided that, if such extension would cause the last
          day of such Interest Period to occur in the next-following calendar
          month, the last day of such Interest Period shall occur on the
          next-preceding Business Day; and

               (c) whenever the last day of any Interest Period occurs on a day
          of an initial calendar month for which there is no numerically
          corresponding day in the sixth calendar month thereafter, such
          Interest Period shall end on the last Business Day of such sixth
          calendar month.

          "Intermediate Holding Company Security Agreement" means a security
     agreement of an Intermediate Holding Company Subsidiary in favor of the
     Collateral Agent and the Lenders entered into pursuant to Section
     5.01(k)(ii), as amended, modified or supplemented from time to time.

          "Intermediate Holding Company Subsidiary" means any Subsidiary of the
     Borrower that:

               (a) has no assets other than (i) capital stock of an Operating
          Subsidiary or Intermediate Holding Company Subsidiary, and (ii)
          Investments permitted under Section 5.02(k)(iii)(B) and (iii)
          intercompany loans made to such Subsidiaries that are permitted under
          Section 5.02(k)(vii);

               (b) has no Debt or other liabilities other than intercompany
          loans permitted under Section 5.02(a)(v); and

               (c) is primarily engaged in the business of holding the capital
          stock of or Investments in an Operating Subsidiary or Intermediate
          Holding Company Subsidiary.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any capital stock, warrants, rights,
     options, obligations or other securities of such Person, any capital
     contribution to such Person or any other investment in such Person,
     including without limitation any arrangement pursuant to
<PAGE>

                                       17

     which the investor incurs Debt of the types referred to in clauses (a) and
     (i) of the definition of "Debt" in respect of such Person.

          "Judgment Currency" has the meaning set forth in Section 8.11(c)(ii).

          "Lender Party" means any Lender or the Administrative Agent.

          "Lenders" means the Initial Lender and each Person that shall become a
     Lender hereunder pursuant to Section 8.07.

          "Lenders' Pro Rata Portion" means, at any time and with respect to any
     amount, the Lenders' pro rata portion of such amount, calculated in
     proportion with the outstanding principal amounts owing at such time by the
     Borrower under the Permitted Loan Agreements (as defined in the
     Intercreditor Agreement).

          "Lending Office" means, with respect to any Lender, the office of such
     Lender specified as its "Lending Office" opposite its name on the signature
     page hereto or in the Assignment and Acceptance pursuant to which it became
     a Lender, or such other office of such Lender as such Lender may from time
     to time specify to the Borrower and the Administrative Agent.

          "LIBOR" means, with respect to any Interest Period, an interest rate
     per annum equal to the rate per annum obtained by the arithmetic mean
     (rounded upwards to the nearest 1/16th of 1%) of the offered rates for
     deposits in United States Dollars in approximately the same amount as such
     Advance and having a tenor equal to the duration of such Interest Period,
     commencing on the first day of such Interest Period, as such rates appear
     on the "Reuters Screen LIBO Page" at approximately 11:00 A.M. (London time)
     on the second Business Day preceding the first day of such Interest Period,
     if at least two such offered rates appear on the Reuters Screen LIBO Page.
     If fewer than two offered rates appear on the Reuters Screen LIBO Page on
     such interest determination date, the Administrative Agent will request the
     principal London offices of each of the Reference Banks to provide the
     Administrative Agent with its offered quotations for deposits in United
     States Dollars in approximately the same amount as such Advance and having
     a tenor equal to the duration of such Interest Period, commencing on the
     first day of such Interest Period, to prime banks in the London interbank
     market at approximately 11:00 A.M. (London time) on such interest
     determination date. If at least two such quotations are provided, LIBOR
     shall be the arithmetic mean (rounded upwards to the nearest 1/16th of 1%)
     of such quotations. If one such quotation is provided, LIBOR shall be the
     rate mentioned in such quotation. If no such quotations are provided, LIBOR
     shall be indeterminable.
<PAGE>

                                       18

          "Licenses" means, at any time, any license or spectrum right listed at
     such time on Schedule 4.01(y) hereof, as amended pursuant to Section
     5.03(u), and all other licenses and spectrum rights (other than licenses
     relating to general business activities and the ownership and use of
     property applicable to persons generally and not specifically required to
     engage in business of the type proposed to be conducted by the Borrower and
     its Subsidiaries) held by the Borrower and its Subsidiaries providing for
     the right to operate the Networks in the Territory.

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including without limitation the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.

          "Loan Documents" means this Agreement, the Notes issued hereunder, the
     Security Agreements, the Intercreditor Agreement, any Guaranty, the
     Collateral Agent Letter and the Blocked Account Letter Agreements.

          "Loan Parties" means the Borrower and any Guarantor.

          "Lucent Credit Agreement" means the Credit Agreement dated as of the
     date hereof among the Borrower, the Lenders party thereto and Lucent
     Technologies, Inc. as Administrative Agent.

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, condition (financial or otherwise), operations, or performance of
     the Borrower and its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on

               (a) the business, condition (financial or otherwise), operations,
          performance, properties or prospects of the Borrower and its
          Subsidiaries taken as a whole,

               (b) the ability of the Borrower to perform its payment
          Obligations under the Loan Documents, or

               (c) the validity or enforceability of any Lien in favor of the
          Agents or the Lenders or the validity or enforceability of any Loan
          Document.
<PAGE>

                                       19

          "Material Assets" means, with respect to any Person, an asset or
     assets having either individually or in the aggregate a fair market value
     of $2,000,000 or more.

          "Material Contract" means, with respect to the Borrower and each of
     its Subsidiaries, each contract to which the Borrower or such Subsidiary,
     as the case may be, is a party involving aggregate consideration payable to
     or by the Borrower or such Subsidiary, as the case may be, of $5,000,000 or
     more in any calendar year.

          "Material License" means, at any time, any License listed at such time
     on Schedule 4.01(ii) hereof, as amended pursuant to Section 5.03(u), and
     all other Licenses held by the Borrower and its Subsidiaries with respect
     to the ownership and operation of digital wireless local loop data networks
     constituting a portion of a Network in each of the Core Territories as well
     as any other part of the Territory that are necessary for the Borrower to
     fulfill the financial and operational projections set forth in the
     Borrower's business plan dated October 29, 1999, including all Licenses
     with respect to rights to use spectrum in the 15 GHz, 18 GHz, 23 GHz and 38
     GHz bands.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Multiple Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and at least one Person other than the
     Loan Parties and the ERISA Affiliates or (b) was so maintained and in
     respect of which any Loan Party or any ERISA Affiliate could have liability
     under Section 4064 or 4069 of ERISA in the event such plan has been or were
     to be terminated.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the sale or issuance of any Debt or
     capital stock or other ownership or profit interest, any securities
     convertible into or exchangeable for capital stock or other ownership or
     profit interest or any warrants, rights, options or other securities to
     acquire capital stock or other ownership or profit interest by any Person,
     or any Extraordinary Receipt received by or paid to or for the account of
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication):
<PAGE>

                                       20

               (a) reasonable and customary brokerage commissions, underwriting
          fees and discounts, legal fees, finder's fees and other similar fees
          and commissions and

               (b) the amount of taxes payable in connection with or as a result
          of such transaction,

     in each case to the extent, but only to the extent, that the amounts so
     deducted are, at the time of receipt of such cash, actually paid to a
     Person that is not an Affiliate of such Person or any Loan Party or any
     Affiliate of any Loan Party and are properly attributable to such
     transaction or to the asset that is the subject thereof.

          "Net Income" means for any period the Consolidated net income or net
     loss, as the case may be, of Borrower and its Subsidiaries, excluding
     extraordinary gains and losses, in each case for such period and as
     determined in accordance with GAAP.

          "Network" has the meaning specified in the recitals to this Agreement.

          "Note" means a promissory note of the Borrower payable to the order of
     any Lender, in substantially the form of Exhibit A, evidencing the
     aggregate Debt of the Borrower to such Lender resulting from the Advances
     made by such Lender.

          "Notice of Borrowing" has the meaning specified in Section 2.02.

          "Obligation" means, with respect to any Person, any payment,
     performance or other obligation of such Person of any kind, including,
     without limitation, any liability of such Person on any claim, whether or
     not the right of any creditor to payment in respect of such claim is
     reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
     disputed, undisputed, legal, equitable, secured or unsecured, and whether
     or not such claim is discharged, stayed or otherwise affected by any
     proceeding referred to in Section 6.01(g). Without limiting the generality
     of the foregoing, the Obligations of the Loan Parties under the Loan
     Documents include (a) the obligation to pay principal, interest, charges,
     expenses, fees, attorneys' fees and disbursements, indemnities and other
     amounts payable by any Loan Party under any Loan Document and (b) the
     obligation of any Loan Party to reimburse any amount in respect of any of
     the foregoing that any Lender Party, in its sole discretion, may elect to
     pay or advance on behalf of such Loan Party.

          "Operating Subsidiary" means any Subsidiary of the Borrower engaged in
     the business of operating one or more Networks.
<PAGE>

                                       21

          "Operating Subsidiary Security Agreement" means a security agreement
     of an Operating Subsidiary in favor of the Collateral Agent and the Lenders
     entered into pursuant to Section 5.01(k)(ii), as amended, modified or
     supplemented from time to time.

          "Other Secured Creditors" means Secured Creditors other than the
     Lenders.

          "Parent" means Diginet Americas, Inc.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced:

               (a) Liens for taxes, assessments and governmental charges or
          levies to the extent not required to be paid under Section 5.01(b)
          hereof;

               (b) Liens imposed by law, such as materialmen's, mechanics',
          carriers', workmen's and repairmen's Liens and other similar Liens
          arising in the ordinary course of business securing obligations that
          are not overdue for a period of more than 30 days;

               (c) pledges or deposits to secure obligations under workers'
          compensation laws or similar legislation or to secure public or
          statutory obligations; and

               (d) easements, rights of way and other encumbrances on title to
          real property that do not render title to the property encumbered
          thereby unmarketable or materially adversely affect the use of such
          property for its present purposes.

          "Person" means an individual, partnership, corporation (including a
     business trust), joint stock company, trust, unincorporated association,
     joint venture, limited liability company or other entity, or a government
     or any political subdivision or agency thereof.

          "Plan" means a Single Employer Plan or a Multiple Employer Plan.

          "Project" has the meaning specified in the recitals of this Agreement.

          "Reference Banks" means Citibank plc, Barclays Bank and The Chase
     Manhattan Bank.

          "Register" has the meaning specified in Section 8.07(c).
<PAGE>

                                       22

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Regulatory Permits" means all permits needed to construct, install,
     commission, service, maintain and operate the Networks in each Core
     Territory.

          "Relationship Agreement" has the meaning specified in the recitals to
     this Agreement.

          "Required Lenders" means at any time Lenders holding at least a
     majority in interest of the sum of the then-outstanding aggregate unpaid
     principal amount of the Advances owing to Lenders and then-outstanding
     undrawn Commitments (including any Commitments not then available to be
     drawn).

          "Restricted Payment" means any distribution of the Borrower or any of
     its Subsidiaries (in cash, property or obligations) on, or other payments
     on account of, or the setting apart of money for a sinking or other
     analogous fund for, or the purchase, redemption, retirement, prepayment or
     other acquisition of

               (a) any portion of any membership or other equity interest in the
          Borrower or of any warrants, options or other rights to acquire any
          such membership or equity interest (or to make any payments to any
          Person where the amount thereof is calculated with reference to fair
          market or equity value of the Borrower or any of its Subsidiaries), or

               (b) any Intercompany Mirror Subordinated Debt or Subordinated
          Debt.

          "Revenue" means, for any period, Consolidated revenue of the Borrower
     and its Subsidiaries for such period as determined in accordance with GAAP.

          "S&P" means Standard & Poor's, a division of The McGraw-Hill
     Companies, Inc.

          "Second Eurodollar Method" means the terms and provisions of this
     Agreement applicable to Advances when the Second Eurodollar Method is to be
     applied pursuant to Section 2.14.

          "Secured Creditors" means creditors of the Borrower or its
     Subsidiaries holding Debt of the Borrower secured by Shared Liens.
<PAGE>

                                       23

          "Security Agreement" means the Borrower Security Agreement, any
     Intermediate Holding Company Security Agreement, any Operating Subsidiary
     Security Agreement or other security agreement entered into pursuant to
     this Agreement in favor of the Collateral Agent and the Lenders, as
     amended, amended and restated, modified or supplemented from time to time,
     and any other agreement that creates or purports to create a Lien in favor
     of the Collateral Agent for the benefit of the Lenders or in favor of the
     Lenders.

          "Securities Act" has the meaning set forth in Section 2.08(b)(iv).

          "Shared Liens" means Liens securing Debt permitted pursuant to Section
     5.02(a)(vii) and (viii).

          "Single Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and no Person other than the Loan Parties
     and the ERISA Affiliates or (b) was so maintained and in respect of which
     any Loan Party or any ERISA Affiliate could have liability under Section
     4069 of ERISA in the event such plan has been or were to be terminated.

          "Solvent" means, with respect to any Person on a particular date, that
     on such date:

               (a) the fair value of the property of such Person is greater than
          the total amount of liabilities, including without limitation
          contingent liabilities, of such Person,

               (b) such Person does not intend to, and does not believe that it
          will, incur debts or liabilities beyond such Person's ability to pay
          as such debts and liabilities mature, and

               (c) such Person is not engaged in business or a transaction, and
          is not about to engage in business or a transaction, for which such
          Person's property would constitute an unreasonably small capital.

          "Subordinated Debt" means any Debt of the Borrower owed to the Parent
     that is subordinated to the Advances pursuant to a Subordination Agreement.

          "Subordination Agreement" means a subordination agreement
     substantially in the form of Exhibit G.
<PAGE>

                                       24

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of:

               (a) the issued and outstanding capital stock having ordinary
          voting power to elect a majority of the Board of Directors of such
          corporation (irrespective of whether at the time capital stock of any
          other class or classes of such corporation shall or might have voting
          power upon the occurrence of any contingency),

               (b) the interest in the capital or profits of such limited
          liability company, partnership or joint venture, or

               (c) the beneficial interest in such trust or estate,

     is at the time directly or indirectly owned or controlled by such Person,
     by such Person and one or more of its other Subsidiaries or by one or more
     of such Person's other Subsidiaries.

          "Supermajority Lenders" means at any time Lenders owed at least a
     662/3% in interest of the sum of the then-outstanding aggregate unpaid
     principal amount of the Advances owing to Lenders and then-outstanding
     undrawn Commitments (including any Commitments not then available to be
     drawn).

          "Supplemental Tranche A Facility Fee" has the meaning specified in
     Section 2.03(c).

          "Supply Agreement" has the meaning specified in the recitals to this
     Agreement.

          "Territory" has the meaning specified in the recitals to this
     Agreement.

          "Total Cash Debt Service" means for any period scheduled total cash
     payments by the Borrower and its Subsidiaries during such period in respect
     of interest (plus any indemnities payable in respect of withholding taxes
     or stamp duties in respect of such interest payments) and principal in
     respect of Debt of the Borrower and its Subsidiaries.

          "Total Debt" means, at any date, the aggregate principal amount of
     Debt of the Borrower and its Subsidiaries then outstanding.

          "Tranche A Advance" has the meaning specified in Section 2.01(a).

          "Tranche A Commitment" means, with respect to any Lender at any time,
     the amount set forth opposite such Lender's name on the signature pages
     hereof or, if such
<PAGE>

                                       25

     Lender has entered into one or more Assignment and Acceptances, set forth
     in the Register maintained by the Administrative Agent pursuant to Section
     8.07(c) as such Lender's "Tranche A Commitment", as such amount may be
     reduced from time to time pursuant to Section 2.04.

          "Tranche A Effective Date" has the meaning specified in Section
     3.01(a).

          "Tranche A Facility Fee" has the meaning specified in Section 2.03(c).

          "Tranche A Termination Date" means the earlier of the second
     anniversary of the Amendment Effective Date and the date of termination in
     whole of the Tranche A Commitments pursuant to Section 2.04 or 6.01.

          "Tranche B Advance" has the meaning specified in Section 2.01(b).

          "Tranche B Commitment" means, with respect to any Lender at any time:

               (a) the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment" plus

               (b) the undrawn amount of such Lender's Tranche A Commitment on
          the Tranche A Termination Date,

          as such amount may be reduced from time to time pursuant to Section
          2.04.

          "Tranche B Effective Date" means, with respect to the Tranche B
     Commitments of the Lenders, the earlier of (a) the second anniversary of
     the Amendment Effective Date and (b) the first date, after all Tranche A
     Commitments shall have been drawn, on which the Borrower shall have
     complied with the covenants set forth in Section 5.04 applicable on such
     second anniversary of the Amendment Effective Date.

          "Tranche B Facility Fee" has the meaning specified in Section 2.03(d).

          "Tranche B Termination Date" means the earliest of (i) the eighteen
     month anniversary of the Tranche B Effective Date, (ii) the forty-two month
     anniversary of the Amendment Effective Date and (iii) the date of
     termination in whole of the Tranche B Commitments pursuant to Section 2.04
     or 6.01.

          "Tributary" has the meaning set forth in Section 5.02(v).
<PAGE>

                                       26

          "Vendor" has the meaning specified in the recitals to this Agreement.

          "Voice Grade Equivalents" means, at any time, the sum of kilobits per
     second in service for each customer at such time, divided by 64 kilobits
     per second.

          "Voting Stock" means capital stock issued by a corporation, or
     equivalent interests in any other Person, the holders of which are
     ordinarily, in the absence of contingencies, entitled to vote for the
     election of directors (or persons performing similar functions) of such
     Person, even if the right so to vote has been suspended by the happening of
     such a contingency.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Wholly Owned Subsidiary" of any Person means any corporation,
     partnership, joint venture, limited liability company, trust or estate of
     which (or in which) 100% of (a) the issued and outstanding capital stock
     having ordinary voting power to elect a majority of the Board of Directors
     of such corporation (irrespective of whether at the time capital stock of
     any other class or classes of such corporation shall or might have voting
     power upon the occurrence of any contingency), (b) the interest in the
     capital or profits of such partnership, joint venture or limited liability
     company or (c) the beneficial interest in such trust or estate is at the
     time directly or indirectly owned or controlled by such Person, by such
     Person and one or more of its other Subsidiaries or by one or more of such
     Person's other Subsidiaries; provided that, if applicable law prohibits the
     exercise of such percentage of direct or indirect ownership or control, the
     ownership or control held by such Person and one or more of its other
     Subsidiaries shall be the maximum percentage permitted under such
     applicable law.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          "Working Capital Investments" means, as at any date, the difference
     (positive or negative) between the amount of current assets (excluding cash
     and Cash Equivalents) of the Borrower as of such date minus the amount of
     current liabilities (excluding current liabilities in respect of Debt) of
     the Borrower as of such date, in each case determined on a consolidated
     basis in accordance with GAAP.

     SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".
<PAGE>

                                       27

     SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with United States generally
accepted accounting principles consistent with those consistently applied in the
preparation of the financial statements ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

     SECTION 2.01. The Advances. (a) The Tranche A Advances. Each Lender having
a Tranche A Commitment severally agrees, on the terms and conditions hereinafter
set forth, to make Advances (each, a "Tranche A Advance") to the Borrower from
time to time on any Business Day during the period from the Tranche A Effective
Date until the Tranche A Termination Date in an aggregate amount not to exceed
at any time outstanding such Lender's Tranche A Commitment. Each Borrowing
consisting of Tranche A Advances shall be in an amount not exceeding (i) amounts
owing under invoices issued or accepted by the Vendor pursuant to the Supply
Agreement during the calendar month immediately preceding the date of the
proposed Borrowing and that were not paid with the proceeds of any prior
Borrowing and (ii) interest owing on Borrowings to be paid with the proceeds
thereof. Each such Borrowing shall consist of Advances made on the same day by
the Lenders ratably according to their respective Tranche A Commitments. Amounts
borrowed hereunder and repaid or prepaid may not be reborrowed.

     (b) The Tranche B Advances. Each Lender having a Tranche B Commitment
severally agrees, on the terms and conditions hereinafter set forth, to make
Advances (each, a "Tranche B Advance") to the Borrower from time to time on any
Business Day during the period from the Tranche B Effective Date until the
Tranche B Termination Date in an aggregate amount not to exceed at any time
outstanding such Lender's Tranche B Commitment. Each Borrowing consisting of
Tranche B Advances shall be in an amount not exceeding (i) amounts owing under
invoices issued or accepted by the Vendor pursuant to the Supply Agreement
during the calendar month immediately preceding the date of the proposed
Borrowing and that were not paid with the proceeds of any prior Borrowing and
(ii) interest owing on Borrowings to be paid with the proceeds thereof. Each
such Borrowing shall consist of Advances made on the same day by the Lenders
ratably according to their respective Tranche B Commitments. Amounts borrowed
hereunder and repaid or prepaid may not be reborrowed.

     SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made on
notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Borrowing by the Borrower to the
Administrative Agent; provided that, except with respect to Borrowings the
proceeds of which shall be used to pay interest owing on Borrowings as permitted
hereunder:
<PAGE>

                                       28

          (i) the Borrower may not give more than one such notice in any
     calendar month; and

          (ii) the date of each Borrowing shall be the twentieth day of each
     calendar month; provided that if such date is not a Business Day, the date
     of Borrowing shall be the next Business Day.

The Administrative Agent shall give to each Lender prompt notice thereof by
telecopier or telex. Each such notice of a Borrowing (a "Notice of Borrowing")
shall be in writing, in substantially the form of Exhibit B, specifying therein:

          (A) the requested date of such Borrowing,

          (B) the requested aggregate amount of such Borrowing,

          (C) the Vendor's invoices to be paid with the proceeds of such
     Borrowing, the respective amounts of such invoices to be paid and the
     aggregate amount of such invoices to be paid, and

          (D) any payments of interest owing on Borrowings to be paid with the
     proceeds of such Borrowing as permitted hereunder.

Each Lender having an applicable Commitment to fund an Advance shall, before
11:00 A.M. (New York City time) on the date of such Borrowing, make available
for the account of its Lending Office to the Administrative Agent at the
Administrative Agent's Account, in same day funds, such Lender's ratable portion
of such Borrowing. After the Administrative Agent's receipt of such funds and
upon fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the Borrower. The
Borrower irrevocably directs the Administrative Agent to make available to the
Borrower the portion of any Borrowing to be used to pay amounts owing to the
Vendor, as specified in the related Notice of Borrowing to account no.
55578207286 of the Borrower or such other account as notified to the
Administrative Agent in the related Notice of Borrowing and to pay the portion
to of any Borrowing to be used to pay interest owing to the Lenders to the
extent permitted hereunder, as specified in the related Notice of Borrowing, to
the Lenders entitled thereto; provided that, if such account is not with the
Administrative Agent such Borrowing shall be deemed to have been made when the
Administrative Agent shall have initiated the transfer of funds comprising such
Borrowing to such account.

     (b) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. The Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including
<PAGE>

                                       29

(without limitation) any loss, cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to fund the Advance to be made by such Lender as part of such Borrowing when
such Advance, as a result of such failure, is not made on such date. The loss to
any Lender attributable to any such failure shall be deemed to be an amount
determined by such Lender to be equal to the excess, if any, of (i) the amount
of interest that such Lender would pay for a deposit equal to the principal
amount of the applicable Eurodollar Rate Advance not borrowed for the duration
of the Interest Period that would have resulted from such borrowing if the
interest rate payable on such deposit were equal to the Eurodollar Rate for such
Interest period, over (ii) the amount of interest that such Lender would earn on
such principal amount for such period if such Lender were to invest such
principal amount for such period at the interest rate that would be bid by such
Lender (or an Affiliate of such Lender) for dollar deposits from other banks in
the eurodollar market at the commencement of such period. A certificate as to
the amount of such loss, cost or expense, submitted to the Borrower by such
Lender, shall be conclusive and binding for all purposes, absent manifest error.

     (c) Unless the Administrative Agent shall have received notice from a
Lender that has an applicable Commitment prior to the date of any Borrowing that
such Lender will not make available to the Administrative Agent such Lender's
ratable portion of such Borrowing, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the date
of such Borrowing in accordance with subsection (a) of this Section 2.02 and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If and to the extent that such
Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay to
the Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made available
to the Borrower until the date such amount is repaid to the Administrative
Agent, at (i) in the case of the Borrower, the interest rate applicable at the
time to Advances comprising such Borrowing and (ii) in the case of such Lender,
the Federal Funds Rate. If such Lender shall repay to the Administrative Agent
such corresponding amount, such amount so repaid shall constitute such Lender's
Advance as part of such Borrowing for purposes of this Agreement.

     (d) The failure of any Lender obligated to make an Advance to make such
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make any Advance to be made by such other Lender on the date of any
Borrowing.

     SECTION 2.03. Fees. (a) Tranche A Commitment Fee. The Borrower shall pay to
the Administrative Agent for the account of each Lender having a Tranche A
Commitment a commitment fee on the average daily unused portion of each Lender's
Tranche A Commitment from the Tranche A Effective Date in the case of the
Initial Lender and from the effective date
<PAGE>

                                       30

specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other such Lender, until the Tranche A Termination Date at
the rate of 1.10% per an-num, payable in cash on the last day of each Interest
Period or, in the event no Advance is then outstanding, in arrears semi-annually
on the last Business Day of each of June and December, commencing on December
31, 1999, and on the Tranche A Termination Date.

     (b) Tranche B Commitment Fee. The Borrower shall pay to the Administrative
Agent for the account of each Lender having a Tranche B Commitment a commitment
fee on the average daily unused portion of such Lender's Tranche B Commitment,
from the Tranche B Effective Date, in the case of each Person that is such a
Lender on such date, and from the effective date specified in the Assignment and
Acceptance pursuant to which it became a Lender in the case of each other such
Lender, until the Tranche B Termination Date at the rate of 1.10% per annum,
payable in cash on the last day of each Interest Period or, in the event no
Advance is then outstanding, in arrears semi-annually on the last Business Day
of each of June and December, commencing on June 30, 2001, and on the Tranche B
Termination Date.

     (c) Tranche A Facility Fee. On the Tranche A Effective Date the Borrower
paid to the Administrative Agent for distribution to the Initial Lender, in
cash, a one-time facility fee (the "Tranche A Facility Fee") of $437,500.00. The
Borrower shall pay to the Administrative Agent for distribution to the Initial
Lender, in cash, on the Amendment Effective Date, a one-time facility fee (the
"Incremental Tranche A Facility Fee") of 1.10% of the increase in the Initial
Lender's Tranche A Commitment over the Initial Lender's Tranche A Commitment
under the Original Credit Agreement as of the date hereof.

     (d) Tranche B Facility Fee. The Borrower shall pay to the Administrative
Agent for distribution to each Lender that has a Tranche B Commitment, in cash,
on the Tranche B Effective Date, a one-time facility fee (the "Tranche B
Facility Fee") of 1.10% of such Tranche B Lender's Tranche B Commitment, other
than any portion thereof reflecting the transfer of any undrawn portion of such
Lender's Tranche A Commitment on the Tranche A Termination Date.

     (e) Administrative Agent's Fees. The Borrower shall pay to the
Administrative Agent for its own account the fee separately agreed with the
Administrative Agent.

     SECTION 2.04. Termination or Reduction of the Commitments. (a) The Borrower
shall have the right, upon at least 10 Business Days' notice to the
Administrative Agent, to terminate in whole or reduce ratably in part the unused
portions of the respective Commitments of the Lenders; provided that each
partial reduction shall be in the aggregate amount of $3,000,000 or an integral
multiple of $1,000,000 in excess thereof.

     (b) On any date on which a mandatory prepayment of Advances would be
required to be prepaid pursuant to Section 2.08(b), the Commitments shall be
automatically
<PAGE>

                                       31

reduced by an amount equal to the excess, if any, of the aggregate
principal amount of the Advances that would be required to be prepaid on such
date if the Commitments were fully drawn (whether or not in fact available for
draw on such date) over the aggregate principal unpaid amount of the Advances
then outstanding.

     SECTION 2.05. Repayment of Advances. (a) Repayment of Tranche A Advances.
The Borrower shall repay to the Administrative Agent for the ratable account of
the Lenders that have made Tranche A Advances the aggregate outstanding
principal amount of the Tranche A Advances in six installments payable on the
last day of every sixth calendar month after the second anniversary of the
Amendment Effective Date each in an amount equal to the product obtained by
multiplying (i) the unpaid principal amount of such Tranche A Advances
outstanding on the Tranche A Termination Date by (ii) 16-2/3%; provided that the
last such installment shall be in an amount necessary to repay in full the
aggregate then-unpaid principal amount of the Tranche A Advances. Each repayment
shall be applied to the unpaid principal amount of Tranche A Advances ratably
across all Borrowings. At the time of such repayment, the Borrower also will pay
accrued and unpaid interest owing on the principal amount of the Tranche A
Advances then being repaid.

     (b) Repayment of Tranche B Advances. The Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders that have made
Tranche B Advances the aggregate outstanding principal amount of the Tranche B
Advances in seven installments payable on the last day of every sixth calendar
month after the eighteen month anniversary of the Tranche B Effective Date each
in an amount equal to the product obtained by multiplying (a) the unpaid
principal amount of such Tranche B Advances outstanding on the Tranche B
Termination Date by (b) 14.29%; provided that the last such installment shall be
in an amount necessary to repay in full the unpaid principal amount of the
Tranche B Advances. Each repayment shall be applied to the unpaid principal
amount of Tranche B Advances ratably across all Borrowings. At the time of such
repayment, the Borrower also will pay accrued and unpaid interest owing on the
principal amount of the Tranche B Advances then being repaid.

     SECTION 2.06. Interest. (a) Scheduled Interest. Except as otherwise
provided in Section 2.09, the Borrower shall pay interest on the unpaid
principal amount of each Advance owing to each Lender from the date of such
Advance until such principal amount shall be paid in full, at a rate per annum
equal at all times during each Interest Period for such Advance to the sum of
(x) the Eurodollar Rate for such Interest Period for such Advance plus (y)
5.75%, payable in arrears on the last day of such Interest Period and on the
date such Advance shall be paid in full.

     (b) Default Interest. Upon the occurrence and during the continuance of an
Event of Default under Section 6.01(a), the Borrower shall pay interest on (i)
the unpaid principal amount of each Advance owing to each Lender, payable in
arrears on the dates referred to in clause (a) above or Section 2.09(c) or (d)
and on demand, at a rate per annum equal at all
<PAGE>

                                       32

times to 2% per annum above the rate per annum required to be paid on such
Advance pursuant to clause (a) above or Section 2.09(c) or (d) and (ii) to the
fullest extent permitted by law, the amount of any interest, fee or other amount
payable hereunder that is not paid when due, from the date such amount shall be
due until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and on demand, at a rate per annum equal at all
times to 2% per annum above the rate per annum required to be paid on Advances
pursuant to clause (a) above.

     SECTION 2.07. Interest Rate Determination. The Administrative Agent shall
give prompt notice to the Borrower and the Lenders of the applicable interest
rate determined by the Administrative Agent for purposes of Section 2.06(a) or
Section 2.09(c) or (d) prior to the commencement of each Interest Period;
provided that any failure by the Administrative Agent to give such notice shall
not affect such applicable interest rate or the Borrower's obligations
hereunder, or give rise to any liability on behalf of the Administrative Agent.

     SECTION 2.08. Prepayments. (a) Optional Prepayments. The Borrower may, upon
at least 10 Business Days' notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding principal amount of
the Advances; provided that (i) each partial prepayment shall be in an aggregate
principal amount of $3,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) the Borrower shall be obligated to reimburse the Lenders in
respect thereof pursuant to Section 8.04(c).

     (b) Mandatory Prepayments. (i) Sales of Assets. The Borrower shall, on each
date on which the Borrower or any Subsidiary thereof receives any Net Cash
Proceeds from the sale, lease, transfer or other disposition (other than
commercial sales in the ordinary course of business), of any Material Assets of
the Borrower or any Subsidiary thereof, prepay an aggregate principal amount of
the Advances equal to the Lenders' Pro Rata Portion of such Net Cash Proceeds
(or, if less, the aggregate principal amount of all Advances); provided that the
Borrower shall not be required to make any prepayment pursuant to this
subsection from any such Net Cash Proceeds it intends to apply to the purchase
of any Capital Assets so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;

          (B) the Borrower shall have purchased such Capital Assets within 180
     days after the date the Borrower or a Subsidiary thereof received such Net
     Cash Proceeds; and

          (C) the Borrower shall have provided the Administrative Agent with
     evidence satisfactory to the Administrative Agent that such Capital Assets
     were purchased within such 180-day period.
<PAGE>

                                       33

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (ii) Insurance Recoveries. The Borrower shall, on each date on which it or
any Subsidiary thereof receives any Net Cash Proceeds from any property and
casualty insurance recovery, prepay an aggregate principal amount of the
Advances equal to the Lenders' Pro Rata Portion of such Net Cash Proceeds (or,
if less, the aggregate principal amount of all Advances); provided that the
Borrower shall not be required to make any prepayment pursuant to this
subsection from any such Net Cash Proceeds it intends to apply to the repair or
replacement of the damaged property so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;

          (B) such Net Cash Proceeds shall have been so applied within 60 days
     after the date the Borrower or a Subsidiary thereof received such Net Cash
     Proceeds; and

          (C) the Borrower or any Subsidiary thereof shall have provided the
     Administrative Agent with evidence satisfactory to the Administrative Agent
     that such Net Cash Proceeds were so applied within such 60-day period.

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (iii) Condemnation Recoveries. The Borrower shall, on each date on which it
or any Subsidiary thereof receives any Net Cash Proceeds from any condemnation
proceeds or similar awards received by the Borrower or any Subsidiary thereof in
connection with any governmental taking of assets of the Borrower or any
Subsidiary thereof, prepay an aggregate principal amount of the Advances equal
to the Lenders' Pro Rata Portion of such Net Cash Proceeds (or, if less, the
aggregate principal amount of all Advances); provided that the Borrower shall
not be required to make any prepayment pursuant to this subsection from any such
Net Cash Proceeds it intends to apply to the replacement of the condemned or
taken property so long as:

          (A) the Borrower shall have notified the Administrative Agent of such
     intent by the date on which such prepayment otherwise would be required;
<PAGE>

                                       34

          (B) such Net Cash Proceeds shall have been so applied within 60 days
     after the date the Borrower or a Subsidiary thereof received such Net Cash
     Proceeds; and

          (C) the Borrower or any Subsidiary thereof shall have provided the
     Administrative Agent with evidence satisfactory to the Administrative Agent
     that such Net Cash Proceeds were so applied within such 60-day period.

If the Borrower shall not have made a prepayment pursuant to this subsection
because of the proviso hereto and shall not have fulfilled the conditions set
forth in such proviso within the period specified therein, it shall make the
prepayment required by this subsection at the end of such period and the proviso
hereto shall no longer be applicable to such prepayment.

     (iv) Offering of Debt Securities. The Borrower shall, on each date on which
it or any Subsidiary receives any Net Cash Proceeds from the issuance of any
securities evidencing Debt of the Borrower or a Subsidiary thereof issued (A) to
qualified institutional buyers pursuant to Regulation S under the United States
Securities Act of 1933 (as amended from time to time, the "Securities Act"), (B)
under Section 4(2) of the Securities Act or (C) in accordance with the
registration and delivery requirements of Section 5 of the Securities Act,
prepay an aggregate principal amount of the Advances comprising part of the same
Borrowings equal to 50% of the Lenders' Pro Rata Portion of such Net Cash
Proceeds (or, if less, the aggregate principal amount of all Advances).

     (v) Excess Cash Flow. The Borrower shall, within five Business Days of each
date upon which the Borrower is required to furnish to the Lenders its annual
financial statements pursuant to Section 5.03(d), deposit into an escrow account
(the terms of which shall be reasonably satisfactory to the Administrative
Agent) an amount equal to 50% of the Borrower's Excess Cash Flow for the
Borrower's fiscal year reflected in such report (for such fiscal year, the
"Excess Cash Flow Amount"). Upon the last day of the Interest Period during
which such deposit was made, the Borrower shall prepay an aggregate principal
amount of the Advances equal to the Lenders' Pro Rata Portion of such Excess
Cash Flow Amount (or, if the outstanding principal amount of the Advances is
less than the Lenders' Pro Rata Portion of such Excess Cash Flow Amount on such
day, the aggregate principal amount of all Advances). Any amounts remaining in
such escrow amount after such prepayment shall be released to the Borrower
immediately following such prepayment.

     (vi) Notice. The Borrower shall give the Administrative Agent at least five
Business Days' prior written notice of (A) each prepayment required by this
Section 2.08(b) and (B) the application of any Net Cash Proceeds pursuant to any
notice delivered in accordance with Section 2.08(b)(ii) or (iii). Such Notice
shall state the aggregate amount of such prepayment or application, as the case
may be, and the date upon which such prepayment or application shall or has been
made.
<PAGE>

                                       35

     (c) Mechanics of Prepayments. All prepayments under this Section 2.08 shall
be made together with accrued interest to the date of such prepayment on the
principal amount prepaid and together with any amounts owing to the Lenders
pursuant to Section 8.04(c) in respect of such prepayment. Any prepayment of
Advances pursuant to this Section 2.08 shall be applied to the installments
thereof in inverse order of maturity, ratably across all Advances being so
prepaid. All prepayments under this Section 2.08 shall be made ratably with
prepayments to lenders under the other Permitted Loan Agreements (as defined in
the Intercreditor Agreement), in proportion with the outstanding principal
amounts owing by the Borrower under the Permitted Loan Agreements.

     SECTION 2.09. Increased Costs, Etc. (a) If, due to either (i) the
introduction of or any change (other than any change by way of imposition or
increase of reserve requirements included in the Eurodollar Rate Reserve
Percentage) in or in the interpretation of any law or regulation or (ii) the
compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or of making, funding
or maintaining Advances (excluding for purposes of this Section 2.09 any such
increased costs resulting from (A) Taxes or Other Taxes (as to which Section
2.11 shall govern) or (B) changes in the basis of taxation of overall net income
or overall gross income by the jurisdiction or state under the laws of which
such Lender is organized or has its Lending Office or any political subdivision
thereof), then the Borrower shall from time to time, upon demand by such Lender
(with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost; provided that a
Lender claiming additional amounts under this Section 2.09(a) agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Lending Office if the making of such a
designation would avoid the need for, or reduce the amount of, such increased
cost that may thereafter accrue and would not, in the reasonable judgment of
such Lender be otherwise disadvantageous to such Lender. If any Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.09(a), it
will promptly notify the Borrower (with a copy of such notice to the
Administrative Agent) of the event by reason of which it has become so entitled
and provide a detailed calculation of the amount to be paid; provided that no
Lender shall be required to disclose in connection with such calculation any
information that it deems to be proprietary or confidential, including, without
limitation, any allocation of internal costs. A certificate as to the amount of
such increased cost, submitted to the Borrower by such Lender, shall be
conclusive and binding for all purposes, absent manifest error.

     (b) If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender's commitment to lend
<PAGE>

                                       36

hereunder then, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to the Administrative Agent for
the account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder; provided that, before making any such demand, such Lender
will use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office if the making
of such a designation would allow such Lender or its Lending Office to continue
to perform its obligations to make Advances or to continue to fund or maintain
Advances and would not, in the judgment of such Lender, be otherwise
disadvantageous to such Lender. If any Lender becomes entitled to claim any
additional amounts pursuant to this Section 2.09(b), it will promptly notify the
Borrower (with a copy of such notice to the Administrative Agent) of the event
by reason of which it has become so entitled and provide a detailed calculation
of the amount to be paid; provided that no Lender shall be required to disclose
in connection with such calculation any information that it deems to be
proprietary or confidential, including, without limitation, any allocation of
internal costs. A certificate as to such amounts submitted to the Borrower by
such Lender shall be conclusive and binding for all purposes, absent manifest
error.

     (c) If, with respect to any Advances, a majority in interest of the Lenders
participating in such Advances notify the Administrative Agent that the
Eurodollar Rate for any Interest Period for such Advances will not adequately
reflect the cost to such Lenders of making, funding or maintaining their
Advances for such Interest Period, the Administrative Agent shall forthwith so
notify the Borrower, whereupon (i) each such Advance will automatically, on the
last day of the then existing Interest Period therefor, cease to bear interest
pursuant to Section 2.06(a) and from such date bear interest at a rate per annum
equal at all times to the sum of (A) the Base Rate in effect from time to time
plus (B) 6.25%, payable in arrears semi-annually on the last day of December and
June until the Administrative Agent shall notify the Borrower that such Lenders
have determined that the circumstances causing such suspension no longer exist
and (ii) the Borrower shall pay interest on the unpaid principal amount of each
Advance made after the giving of such notice by the Required Lenders from the
date of such Advance until the earlier of (A) the payment in full of such
Advance and (B) the date upon which the Administrative Agent has notified the
Borrower that such Lenders have determined that the circumstances causing such
suspension no longer exist, at a rate per annum equal to the actual cost
incurred by the Lenders in making such Advance plus 6.25%, payable in arrears
semi-annually on the last day of December and June. A certificate as to the rate
referred to in clause (ii) above submitted to the Borrower by such Lenders shall
be conclusive and binding for all purposes, absent manifest error.

     (d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Lending Office
to perform its obligations hereunder to make Advances or to continue to fund or
<PAGE>

                                       37

maintain Advances hereunder, then, on notice thereof and demand therefor by the
Required Lenders to the Borrower through the Administrative Agent, (i) each
Advance will automatically, on such demand, cease to bear interest pursuant to
Section 2.06(a) and from such demand bear interest at a rate per annum equal at
all times to the sum of (A) the Base Rate in effect from time to time plus (B)
6.25%, payable in arrears semi-annually on the last day of each December and
June until the Administrative Agent shall notify the Borrower that such Lender
has determined that the circumstances causing such suspension no longer exist,
and (ii) the Borrower shall pay interest on the unpaid principal amount of each
Advance made after the giving of such notice by the Required Lenders from the
date of such Advance until the earlier of (A) the payment in full of such
Advance and (B) the date upon which the Administrative Agent has notified the
Borrower that such Lenders have determined that the circumstances causing such
suspension no longer exist, at a rate per annum equal to the actual cost
incurred by the Lenders in making such Advance plus 6.25%, payable in arrears
semi-annually on the last day of December and June; provided that, before making
any such demand, such Lender will use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to designate a different
Lending Office if the making of such a designation would allow such Lender or
its Lending Office to continue to perform its obligations to make Advances or to
continue to fund or maintain Advances and would not, in the judgment of such
Lender, be otherwise disadvantageous to such Lender. A certificate as to the
rate referred to in clause (ii) above submitted to the Borrower by such Lenders
shall be conclusive and binding for all purposes, absent manifest error.

     SECTION 2.10. Payments and Computations. (a) The Borrower shall make each
payment hereunder and under the Notes issued hereunder not later than 11:00 A.M.
(New York City time) on the day when due in U.S. dollars to the Administrative
Agent at the Administrative Agent's Account in same-day funds. The
Administrative Agent will promptly thereafter cause to be distributed like funds
relating to the payment of principal or interest or fees ratably (other than
amounts payable pursuant to Section 2.09, 2.11 or 8.04(c)) to the Lenders
entitled thereto for the account of their respective Lending Offices, and like
funds relating to the payment of any other amount payable to any Lender to such
Lender for the account of its Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an
Assignment and Acceptance and recording of the information contained therein in
the Register pursuant to Section 8.07(d), from and after the effective date
specified in such Assignment and Acceptance, the Administrative Agent shall make
all payments hereunder and under the Notes issued hereunder in respect of the
interest assigned thereby to the Lender assignee thereunder, and the parties to
such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves
and the Borrower shall have no further obligation to such assignee with respect
to such adjustments.

     (b) Promptly on request by any Lender, the Borrower will deliver to such
Lender a Note payable to the order of such Lender.
<PAGE>

                                       38

     (c) All computations of interest based on the Base Rate shall be made by
the Administrative Agent on the basis of a year of 365 or 366 days, as the case
may be, and all computations of other interest and of fees shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or fees are payable. Each
determination by the Administrative Agent of an interest rate hereunder shall be
conclusive and binding for all purposes, absent manifest error.

     (d) Whenever any payment hereunder or under the Notes issued hereunder
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or commitment
fee, as the case may be; provided that, if such extension would cause payment of
interest on or principal of Advances to be made in the next following calendar
month, such payment shall be made on the next-preceding Business Day.

     (e) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Lenders hereunder
that the Borrower will not make such payment in full, the Administrative Agent
may assume that the Borrower has made such payment in full to the Administrative
Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount
equal to the amount then due such Lender. If and to the extent the Borrower
shall not have so made such payment in full to the Administrative Agent, each
Lender shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the
date such amount is distributed to such Lender until the date such Lender repays
such amount to the Administrative Agent, at the Federal Funds Rate.

     (f) The obligation of the Borrower to make any payment under this Agreement
or any other Loan Document, including without limitation payments of principal,
interest, fees, costs and expenses due in accordance with the terms of the Loan
Documents, shall be unconditional and absolute, irrespective among other things
of the following:

          (i) any set-off, counterclaim, recoupment, deduction, abatement,
     suspension, diminution, reduction, defense or other right that the Borrower
     may have against the Vendor at any time for any reason whatsoever arising
     under or pursuant to the Supply Agreement or otherwise relating to the
     purchase of goods, equipment, other property or services from or by the
     Vendor;

          (ii) any defect in the condition, design, operation or fitness for use
     of, or any damage to or loss or destruction of, any equipment or material
     provided by the Vendor;
<PAGE>

                                       39

          (iii) any actual or alleged default by the Vendor or any other Person
     under the Supply Agreement; or

          (iv) any other fact or circumstance relating to the Supply Agreement.

     SECTION 2.11. Taxes. (a) Any and all payments by the Borrower hereunder or
under the Notes issued hereunder shall be made, in accordance with Section 2.10,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and the Administrative
Agent, taxes that are imposed on its overall net income by the United States and
taxes that are imposed on its overall net income (and franchise taxes imposed in
lieu thereof) by the state or foreign jurisdiction under the laws of which such
Lender or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof and, in the case of each Lender, taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction of such Lender's Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as "Taxes"). If the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note to any Lender or the Administrative
Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.11) such Lender or the Administrative Agent
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.

     (b) In addition, the Borrower shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performing under, or otherwise with respect to,
this Agreement, the Notes or the other Loan Documents (hereinafter referred to
as "Other Taxes").

     (c) The Borrower shall indemnify each Lender and the Administrative Agent
for and hold it harmless against the full amount of Taxes or Other Taxes
(including without limitation taxes of any kind imposed by any jurisdiction on
amounts payable under this Section 2.11) imposed on or paid by such Lender or
the Administrative Agent (as the case may be) and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto.
This indemnification shall be made within 30 days from the date such Lender or
the Administrative Agent (as the case may be) makes written demand therefor.

     (d) Within 60 days after the date of any payment of Taxes, the Borrower
shall furnish to the Administrative Agent, at its address referred to in Section
8.02, the original or a
<PAGE>

                                       40

certified copy of a receipt evidencing such payment. In the case of any payment
hereunder or under the Notes by or on behalf of the Borrower through an account
or branch outside the United States or by or on behalf of the Borrower by a
payor that is not a United States person, if the Borrower determines that no
Taxes are payable in respect thereof, the Borrower shall furnish, or shall cause
such payor to furnish, to the Administrative Agent, at such address, an opinion
of counsel acceptable to the Administrative Agent stating that such payment is
exempt from Taxes. For purposes of this subsection (d) and subsection (e), the
terms "United States" and "United States person" shall have the meanings
specified in Section 7701 of the Internal Revenue Code or (in the case of a
Lender that has certified in writing to the Administrative Agent that it is not
a "bank" as defined in Section 881(c)(3)(A) of the Internal Revenue Code) form
W-8 (and, if such Lender delivers a form W-8, a certificate representing that
such Lender is not a "bank" for purposes of Section 881(c) of the Internal
Revenue Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Internal Revenue Code) of the Borrower and is not a
controlled foreign corporation related to the Borrower (within the meaning of
Section 864(d)(4) of the Internal Revenue Code)), as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from or entitled to a reduced rate of United States
withholding tax on payments pursuant to this Agreement or the Notes or, in the
case of a Lender providing a form W-8, certifying that such Lender is a foreign
corporation, partnership, estate or trust. If the forms provided by a Lender at
the time such Lender first becomes a party to this Agreement indicates a United
States interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Taxes unless and until such Lender
provides the appropriate form certifying that a lesser rate applies, whereupon
withholding tax at such lesser rate only shall be considered excluded from Taxes
for periods governed by such form; provided that, if at the date of the
Assignment and Acceptance pursuant to which a Lender becomes a party to this
Agreement, the Lender assignor was entitled to payments under subsection (a) in
respect of United States withholding tax with respect to interest paid at such
date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise
includable in Taxes) United States withholding tax, if any, applicable with
respect to the Lender assignee on such date. If any form or document referred to
in this subsection (d) requires the disclosure of information, other than
information necessary to compute the tax payable and information required on the
date hereof by Internal Revenue Service form 1001, 4224 or W-8 (or the related
certificate described above), that the Lender reasonably considers to be
confidential, the Lender shall give notice thereof to the Borrower and shall not
be obligated to include in such form or document such confidential information.

     (e) For any period with respect to which a Lender has failed to provide the
Borrower with the appropriate form described in Section 2.11(d) (other than if
such failure is due to a change in law occurring subsequent to the date on which
a form originally was required to be provided, or if such form otherwise is not
required under subsection (d) above), such Lender shall not be entitled to
indemnification under Section 2.11(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided that should a Lender
become
<PAGE>

                                       41

subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as the Lender shall reasonably
request to assist the Lender to recover such Taxes.

     SECTION 2.12. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances owing to it (other than
pursuant to Section 2.09, 2.11 or 8.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided that if all or any
portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender's ratable share (according to the
proportion of (a) the amount of such Lender's required repayment to (b) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrower agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section 2.12 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the
direct creditor of the Borrower in the amount of such participation. With
respect to any reduction or termination of Commitments pursuant to Section 2.04,
the reduction or termination of the Commitments shall be made ratably among the
Commitments of all Lenders outstanding at the time of such reduction or
termination. With respect to any repayment or prepayment made by the Borrower
hereunder other than scheduled amortization pursuant to Section 2.05, such
repayment or prepayment shall be distributed ratably among all Lenders in
proportion with the principal amount of the Advances held by each such Lender
outstanding at the time of such repayment or prepayment. With respect to any
repayment of scheduled amortization made by the Borrower hereunder pursuant to
Section 2.05, such repayments shall be distributed ratably among all Lenders of
the relevant tranche in proportion with the principal amount of the Advances of
such tranche held by each such Lender of outstanding at the time of such
repayment or prepayment.

     SECTION 2.13. Use of Proceeds. The proceeds of the Advances shall be
available to the Borrower and its Subsidiaries, directly or indirectly, solely
(a) to make Back-to-Back Loans that shall be used by Operating Subsidiaries to
purchase telecommunications equipment, software, engineering and other services
(i) pursuant to or in accordance with the Supply Agreement and subject to the
limitations set forth therein for the purpose of planning, constructing,
operating and maintaining Networks in the Core Territories and (ii) described in
the letter dated June 18, 1999 from LM Ericsson Telefonaktiebolaget to the
Borrower, (b) to pay interest payable to the Lenders on each interest payment
date occurring on or prior to the first anniversary of the Amendment Effective
Date and (c) to pay fees payable pursuant to Section 2.03 and expenses payable
pursuant to Section 8.04(a)(i)(A) and (B), in each case with respect to the
Lenders. The proceeds of all Advances to be used as described in clause (a) of
the preceding
<PAGE>

                                       42

sentence shall be paid directly to the financial institution providing
Back-to-Back Loans and the proceeds of such Back-to-Back Loans made to Operating
Subsidiaries in Argentina, Brazil and Peru shall at all times be held in Blocked
Accounts until disbursed to pay invoices under the Supply Agreement.

     SECTION 2.14. First Eurodollar Method and Second Eurodollar Method. The
First Eurodollar Method shall be applicable at all times until such time as the
Second Eurodollar Method becomes applicable. If there is a Lender in addition to
or other than the Initial Lender (other than an Affiliate of the Initial Lender)
and the Administrative Agent at the direction of any Lender shall have notified
the Borrower that the Second Eurodollar Method shall be applicable, the Second
Eurodollar Method shall become applicable immediately as of the date of such
notice for all new Advances made as of and following the date of such notice.
After becoming applicable, the Second Eurodollar Method shall remain applicable
at all times thereafter.

     SECTION 2.15. Redistribution of Payments. In the event that a repayment
under Section 2.05 or a prepayment under Section 2.08 is required to be
redistributed by the Lenders to the lenders (the "Other Lenders") under another
Permitted Loan Agreement (as defined in the Intercreditor Agreement) pursuant to
Section 4.2 or 4.3 of the Intercreditor Agreement, (i) the Borrower authorizes
the Lenders to act as its agent in connection with such redistribution and make
such redistribution to the Other Lenders on its behalf and acknowledges that any
amount so redistributed shall be deemed not to have been paid by the Borrower to
the Lenders in their capacity as Lenders hereunder and (ii) the Lenders agree to
act as agent for the Borrower in connection with such redistribution and agree
to make such redistribution to the Other Lenders on its behalf. In the event
that a repayment or prepayment made by the Borrower pursuant to another
Permitted Loan Agreement to the Other Lenders party thereto is required to be
redistributed by such Other Lenders pursuant to Section 4.2 or 4.3 of the
Intercreditor Agreement, the Lenders acknowledge that any amount so
redistributed (I) shall have been paid by the Other Lenders acting as agent for
the Borrower in connection with such redistribution, (II) shall be deemed to
have been paid by the Borrower to the Lenders in respect of the Advances
pursuant to Section 2.05 or 2.08, as the case may be, and (III) shall be
allocated among the Lenders in accordance with Section 2.12.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

     SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01(a).
Certain conditions were required to be fulfilled by the Borrower prior to the
initial Borrowing under the Original Credit Agreement. On or prior to August 27,
1999, the Administrative Agent received certain documents and other evidence as
to the satisfaction of such conditions, satisfactory to the Administrative Agent
(and, to the extent required, to each Lender) in form and
<PAGE>

                                       43

substance, or such conditions were waived in accordance with the Original Credit
Agreement, and as a result Section 2.01(a) of this Agreement became effective on
and as of August 27, 1999 (the "Tranche A Effective Date").

     SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of
each Lender having a Commitment to make an Advance on the occasion of each
Borrowing shall be subject to the conditions precedent that on the date of such
Borrowing the following statements shall be true (and each of the giving of the
applicable Notice of Borrowing and the acceptance by the Borrower of the
proceeds of such Borrowing shall constitute a representation and warranty by the
Borrower that on the date of such Borrowing such statements are true):

          (a) the representations and warranties contained in Section 4.01 shall
     be correct in all material respects on and as of the date of such Borrowing
     (or, to the extent stated to relate to an earlier date, as of such earlier
     date), before and after giving effect to such Borrowing and to the
     application of the proceeds therefrom, as though made on and as of such
     date,

          (b) no addition or amendment to the authorizations, approvals or other
     actions by, and notices or filings with, any governmental authority or
     third party set forth on the Schedule 4.01(f) delivered on the Tranche A
     Effective Date shall materially adversely affect (i) the due execution,
     delivery, recordation, filing or performance by any Loan Party of this
     Agreement, the Notes or any other Loan Document to which it is or is to be
     a party or for the consummation of the transactions contemplated hereby and
     thereby, (ii) the grant of the Liens granted by any Loan Party pursuant to
     this Agreement, the Security Agreements and the Notes (including to the
     extent permitted by applicable law and subject to Permitted Liens and
     Shared Liens the first-priority nature thereof) other than Permitted Liens
     and Shared Liens and (iii) the exercise by the Administrative Agent, the
     Collateral Agent or any Lender of its rights under this Agreement, the
     Notes or any other Loan Document or of the remedies in respect of the
     Collateral granted pursuant to the Security Agreements, in each case as
     reasonably determined by the Lenders,

          (c) no event shall have occurred and be continuing, or would result
     from such Borrowing or from the application of the proceeds therefrom, that
     constitutes a Default, and

          (d) at any time that the Initial Lender shall have any Commitment
     hereunder, the Supply Agreement has not been terminated by Vendor for cause
     in accordance with Section 15.2(b) of the Relationship Agreement or the
     corresponding provision of any Specific Agreement or by Borrower without
     cause, in each case in accordance with the terms thereof,
<PAGE>

                                       44

     provided that the provisions of clauses (a), (b) and (c) of this Section
     3.02 shall not be applicable with respect to any Borrowing to the extent
     the proceeds thereof will be used to pay interest in accordance with
     Section 2.13.

     SECTION 3.03. Conditions Precedent to Effectiveness of this Agreement. This
Agreement shall become effective on and as of the first date (the "Amendment
Effective Date") on which the following conditions precedent have been
satisfied:

          (a) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of their Subsidiaries pending
     or, to the best of the Borrower's knowledge, threatened before any court,
     governmental agency or arbitrator that (i) could be reasonably likely to
     have a Material Adverse Effect other than the matters described on Schedule
     3.01(a)(i) hereto (the "Disclosed Litigation") or (ii) purports to
     adversely affect the legality, validity or enforceability of any material
     provision of this Agreement, any Note or any other Loan Document or the
     consummation of any of the transactions contemplated hereby.

          (b) All material governmental and third party consents and approvals
     necessary in connection with the transactions contemplated hereby which are
     required to be obtained by the Borrower in connection with its activities
     being conducted on such date and all Regulatory Permits shall have been
     obtained and shall remain in effect; all applicable waiting periods shall
     have expired without any action being taken by any competent authority.

          (c) The Borrower shall have a minimum amount of $145,000,000 in fully
     paid-up equity capital, which shall include expenditures of the Parent
     prior to the date hereof in connection with the development of the business
     of the Borrower and its Subsidiaries.

          (d) The Supply Agreement shall have been duly executed and delivered
     and be in full force and effect and there shall be no material default
     thereunder, and the Administrative Agent shall have received a certified
     copy thereof.

          (e) The Intercreditor Agreement shall have been duly executed and
     delivered and be in full force and effect and there shall be no material
     default thereunder, and the Administrative Agent shall have received a
     certified copy thereof.

          (f) The Collateral Agent Letter shall have been duly executed and
     delivered and be in full force and effect, and the Administrative Agent
     shall have received a certified copy thereof.
<PAGE>

                                       45

          (g) All stock and capital contributions of the Borrower's Subsidiaries
     shall be owned by the Borrower or one or more of the Borrower's
     Subsidiaries, in each case free and clear of any Liens (except for the
     Liens created pursuant to the Security Agreements), except as set forth in
     Section 4.01(b).

          (h) The Collateral Agent and/or the Lenders shall have a valid and
     perfected first-priority Lien and security interest in the capital stock
     and capital contributions of all the Operating Subsidiaries and, to the
     extent permitted by applicable law and subject to Permitted Liens, in the
     Collateral referred to in the Security Agreements, all searches necessary
     or desirable in connection with such Liens and security interests having
     been duly made.

          (i) The Administrative Agent shall have received on or before the
     Tranche A Effective Date the following, each dated such day, in form and
     substance satisfactory to the Administrative Agent and (except for the
     Notes) in sufficient copies for each Lender:

               (i) Notes payable to the order of the Initial Lender.

               (ii) A business plan, in form and substance satisfactory to the
          Lenders.

               (iii) A copy of the annual audit report for the Borrower for the
          most recent fiscal year of the Borrower and its Subsidiaries,
          containing Consolidated and consolidating balance sheets of the
          Borrower and its Subsidiaries as of the end of such fiscal year and
          Consolidated and consolidating statements of income and cash flows of
          the Borrower and its Subsidiaries for such fiscal year.

               (iv) Consolidated and consolidating balance sheets of the
          Borrower and its Subsidiaries as of the end of each fiscal quarter
          since the most recent fiscal year of the Borrower and Consolidated and
          consolidating statements of income and cash flows of the Borrower and
          its Subsidiaries for the period commencing at the end of the most
          recent fiscal year of the Borrower and ending with the end of its most
          recent fiscal quarter.

               (v) Evidence that the Borrower and its Subsidiaries have obtained
          Licenses sufficient to permit the operation of the Networks up until
          the seventh anniversary of the date hereof, in form and substance
          satisfactory to the Lenders.

               (vi) Certificates of the Borrower and each of its Subsidiaries
          executing a Guaranty or Security Agreement on or prior to the
          Amendment Effective Date, in each case attaching the charter of such
          Person and each amendment thereto on file in such office and
          certifying that (A) such charter is a true and complete copy thereof,
          (B) such amendments are the only amendments to such charter, (C) such
<PAGE>

                                       46

          Person has paid all franchise taxes to the date of such certificate
          and (D) such Person is duly organized and, if applicable, in good
          standing under the laws of its jurisdiction of incorporation.

               (vii) Certificates of each of the Borrower and its Subsidiaries
          executing a Guaranty or Security Agreement on or prior to the
          Amendment Effective Date, signed on behalf of each such Person by the
          President, a Vice President, the Secretary or any Assistant Secretary
          of each such Person (the statements made in such certificate shall be
          true and correct on and as of the Tranche A Effective Date),
          certifying as to:

                    (A) the absence of any amendments to the charter of each
               such Person since the date of the certificate referred to in
               3.01(i)(vi);

                    (B) a true and correct copy of the by-laws of such Person as
               in effect on the Tranche A Effective Date;

                    (C) the due incorporation and good standing of such Person
               as a corporation or a limited liability company, as the case may
               be, under the laws of the jurisdiction of its organization and
               the absence of any proceeding for the dissolution or liquidation
               of such Person;

                    (D) that attached thereto is a true and complete copy of
               resolutions duly adopted by the board of directors or the general
               assembly of partners, as the case may be, of such Person
               authorizing the execution, delivery and performance of each Loan
               Document to which such Person is a party;

                    (E) in the case of each such Person, that such resolutions
               have not been revoked, annulled or modified in any manner and are
               in full force and effect; and

                    (F) in the case of each such Person, the incumbency and
               specimen signature of each officer of such Person executing each
               of the Loan Documents to which such Person is a party, on behalf
               of such Person, and a certification of another officer of each
               such Person as to the signature of the officers signing
               certificates referred to in this subclause (vii).

               (viii) Security Agreements, in form and substance reasonably
          satisfactory to the Administrative Agent, duly executed by the
          Borrower, each
<PAGE>

                                       47

          Intermediate Holding Company Subsidiary and each Operating Subsidiary
          party thereto, together with:

                    (A) certificates representing any Pledged Shares referred to
               therein;

                    (B) executed copies of any proper financing statements and
               other filings and registrations filed in order to perfect and
               protect the Liens created by the Security Agreements, covering
               the Collateral described therein, and any acknowledgments which
               may be customarily delivered by the appropriate authorities of
               the jurisdictions in which such Liens have been perfected and
               protected, in each case in form and substance satisfactory to the
               Lenders;

                    (C) copies of any Assigned Agreements referred to in the
               Security Agreements; and

                    (D) evidence that all other action necessary as of such date
               in order to perfect and protect the Liens created by the Security
               Agreements has been taken.

               (ix) Guaranties duly executed by each Operating Subsidiary and
          Intermediate Holding Company Subsidiary.

               (x) A favorable opinion of Stroeter & Ohno Advogados Associados,
          Brazilian counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xi) A favorable opinion of Cibils, Blaquier & Boneo Villagas,
          Argentine counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xii) A favorable opinion of Posse Herrera & Ruiz, Colombian
          counsel for the Loan Parties, in form and substance reasonably
          satisfactory to the Administrative Agent.

               (xiii) A favorable opinion of Arias, Fabrega & Fabrega,
          Panamanian counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.
<PAGE>

                                       48

               (xiv) A favorable opinion of Miranda & Amado, Peruvian counsel
          for the Loan Parties, in form and substance reasonably satisfactory to
          the Administrative Agent

               (xv) A favorable opinion of Milbank, Tweed, Hadley & McCloy, New
          York counsel for the Loan Parties, in form and substance reasonably
          satisfactory to the Administrative Agent.

               (xvi) A favorable opinion of Pinheiro Guimaraes - Advogados,
          Brazilian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xvii) A favorable opinion of Marval, O'Farrell & Mairal,
          Argentine counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xviii) A favorable opinion of Arenas, Lopez, Montealgre y
          Plazas, Colombian counsel for the Secured Creditors, in form and
          substance reasonably satisfactory to the Administrative Agent.

               (xix) A favorable opinion of Aleman, Cordero, Galindo & Lee,
          Panamanian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xx) A favorable opinion of Estudio Luis Echecopar Garcia,
          Peruvian counsel for the Secured Creditors, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xxi) A favorable opinion of Wilson, Sonsini, Goodrich and
          Rosati, U.S. counsel for the Loan Parties, in form and substance
          reasonably satisfactory to the Administrative Agent.

               (xxii) Copies of process-agent letters for each of the Loan
          Parties organized in a jurisdiction outside the United States.

          (j) The Borrower shall have paid all accrued fees and expenses of the
     Agents and the Lenders (including the accrued fees and expenses of counsel
     and local counsel to the Agents and the Lenders).

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES
<PAGE>

                                       49

     SECTION 4.01. Representations and Warranties of the Borrower. The Borrower
represented and warranted as follows as of the Tranche A Effective Date, and
represents and warrants as follows on the Amendment Effective Date and on the
date of each Borrowing hereunder:

          (a) The Borrower (i) has been duly formed and is validly existing and
     in good standing as a corporation under the laws of Delaware with full
     corporate power and authority (including without limitation all material
     governmental licenses, permits and other approvals) necessary to conduct
     its business as described herein, (ii) is duly qualified and is authorized
     to do business and is in good standing in each other jurisdiction in which
     the conduct of its business requires it to be so qualified or authorized
     and (iii) has all requisite corporate power and authority to own its
     properties and to carry on its business as now conducted and as proposed to
     be conducted.

          (b) Set forth on Schedule 4.01(b) hereto as amended from time to time
     pursuant to Section 5.03(u) is a complete and accurate list of all
     Operating Subsidiaries, Intermediate Holding Company Subsidiaries and
     Insignificant Subsidiaries showing (as to each such Subsidiary) whether it
     is an Operating Subsidiary, an Intermediate Holding Company Subsidiary or
     an Insignificant Subsidiary, the jurisdiction of its incorporation, the
     number of shares of each class of capital stock or participations
     authorized, and the number outstanding, and the percentage of the
     outstanding shares or participations of each such class owned (directly or
     indirectly) by the Borrower and the number of shares or participations
     covered by all outstanding options, warrants, rights of conversion or
     purchase and similar rights. All of the outstanding capital stock or
     participations of all of the Subsidiaries set forth on Schedule 4.01(b)
     hereto, as amended from time to time pursuant to Section 5.03(u), has been
     fully issued, is fully paid and non-assessable and is owned by the Borrower
     or one or more of its Subsidiaries, except as set forth on Schedule 4.01(b)
     hereto, free and clear of all Liens, except those created by the Security
     Agreements. Each Subsidiary set forth on Schedule 4.01(b) hereto, as
     amended from time to time pursuant to Section 5.03(u), (i) is a corporation
     or a limited liability company duly organized, validly existing and, if
     applicable, in good standing under the laws of the jurisdiction of its
     incorporation, (ii) is duly qualified and, if applicable, in good standing
     as a foreign corporation in each other jurisdiction in which the conduct of
     its business requires it to so qualify and (iii) has all requisite
     corporate power and authority to own or lease and operate its properties
     and to carry on its business as now conducted and as proposed to be
     conducted. Other than as set forth in Schedule 4.01(b) hereto, no Person
     other than the Borrower has any rights to acquire any capital stock or
     participations of any Operating Company Subsidiary or Intermediate Holding
     Company Subsidiary of the Borrower during the period when any Advances
     shall be outstanding.
<PAGE>

                                       50

          (c) Each Loan Party has full corporate power and authority to enter
     into, deliver and perform its obligations under this Agreement, the Notes
     and each other Loan Document to which it is or is to be a party and to
     consummate the transactions contemplated hereby and thereby, and has taken
     all necessary corporate action to authorize the execution, delivery and
     performance by it of this Agreement, the Notes and each other Loan
     Document.

          (d) The execution, delivery and performance by each Loan Party of this
     Agreement, the Notes and each other Loan Document to which it is or is to
     be a party and the consummation of the transactions contemplated hereby and
     thereby are within its corporate powers and shall not and will not (i)
     contravene (A) its organizational documents or (B) any law, rule,
     regulation or order or any contractual restriction binding on or affecting
     it or (ii) conflict with or result in a breach of, constitute a default
     under or result in the creation or imposition of any Lien (except for the
     Liens created pursuant to the Loan Documents) upon any of its property or
     assets or under any contract, loan agreement, indenture, mortgage, deed of
     trust, lease or other instrument to which it is a party or by which it is
     bound or to which the property or assets of it is subject, except where
     such contravention, conflict, breach, default or failure to comply would
     not have a Material Adverse Effect.

          (e) No Loan Party is in violation of any law, rule, regulation, order,
     writ, judgment, injunction, decree, determination or award or in breach of
     any contract, loan agreement, indenture, mortgage, deed of trust, lease or
     other instrument, the violation or breach of which is reasonably likely to
     have a Material Adverse Effect.

          (f) Except as otherwise described on Schedule 4.01 (f) as amended from
     time to time pursuant to Section 5.03 (u) no authorization or approval or
     other action by, and no notice to or filing with, any governmental
     authority or any other third party is required for (i) the due execution,
     delivery, recordation, filing or performance by any Loan Party of this
     Agreement, the Notes or any other Loan Document to which it is or is to be
     a party or for the consummation of the transactions contemplated hereby and
     thereby, (ii) the grant of the Liens granted by any Loan Party pursuant to
     this Agreement, the Security Agreements, the Blocked Account Letter
     Agreements and the Notes (including to the extent permitted by applicable
     law and subject to Permitted Liens and Shared Liens the first-priority
     nature thereof) other than Permitted Liens and Shared Liens and (iii) the
     exercise by the Administrative Agent, the Collateral Agent or any Lender of
     its rights under this Agreement, the Notes or any other Loan Document or of
     the remedies in respect of the collateral granted pursuant to the Security
     Agreements.

          (g) This Agreement, the Notes and each other Loan Document to which it
     is a party have been duly executed and delivered by the Borrower and, when
     executed and delivered hereunder, will constitute legal, valid and binding
     obligations of the Borrower
<PAGE>

                                       51

     and each of its Subsidiaries that is a party thereto, enforceable against
     the Borrower and such Subsidiaries in accordance with their respective
     terms except as such enforceability may be limited by (i) applicable
     bankruptcy, insolvency, liquidation, fraudulent conveyance, reorganization,
     concordato, moratorium or similar laws now or hereafter in effect affecting
     the enforcement of creditors' rights generally and (ii) general principles
     of equity (regardless of whether such enforceability is considered in a
     proceeding at law or in equity).

          (h) The balance sheet of the Borrower as at September 30, 1999 and the
     related statement of income and cash flows of the Borrower for the three
     month period then ended, copies of which have been furnished to each
     Lender, fairly present in all material respects (subject to year-end audit
     adjustments) the financial condition of the Borrower as at such date and
     the results of operations of the Borrower for the period ended on such
     date, all in accordance with generally accepted accounting principles
     applied on a consistent basis. The Consolidated forecasted balance sheets,
     income statements and cash flow statements of the Borrower and its
     Subsidiaries delivered to the Lenders in connection with the Project were
     prepared in good faith on the basis of the assumptions stated therein,
     which assumptions the Borrower believes were fair in the light of
     conditions existing at the time of delivery of such forecasts, and
     represented, at the time of delivery, the Borrower's best estimate of its
     future financial performance, it being understood that nothing set forth in
     such Consolidated forecasted balance sheets, income statements and cash
     flow statements shall be construed as a representation, warranty, covenant,
     undertaking, guaranty or assurance by the Borrower or any of its
     Subsidiaries as to the future financial or business performance of the
     Borrower and its Subsidiaries and that the forward-looking statements
     contained in such Consolidated forecasted balance sheets, income statements
     and cash flow statements involve known and unknown risks, contingencies,
     uncertainties and other factors that may cause the actual results, events
     or developments pertaining to the Borrower and its Subsidiaries to be
     materially and adversely different from any future results, events or
     developments contemplated, expressed or implied by such Consolidated
     forecasted balance sheets, income statements and cash flow statements.
     Since September 30, 1999, there has been no Material Adverse Change.

          (i) No information, exhibit or report furnished in writing by (or on
     behalf of) the Borrower to the Administrative Agent, the Collateral Agent
     or any Lender in connection with the negotiation of the Loan Documents or
     pursuant to the terms of the Loan Documents contained at the time when
     furnished any untrue statement of material fact or omitted to state a
     material fact necessary to make the statements made therein (taken as a
     whole) not misleading.

          (j) Except as otherwise described on Schedule 3.01(a)(i), there is no
     pending or, to the best of the Borrower's knowledge, threatened action,
     suit, investigation,
<PAGE>

                                       52

     litigation or proceeding, including without limitation any Environmental
     Action, affecting the Borrower or any of its Subsidiaries before any court,
     governmental agency or arbitrator that (i) could be reasonably likely to
     have a Material Adverse Effect or (ii) purports to affect the legality,
     validity or enforceability of any Loan Document or the consummation of the
     transactions contemplated hereby or thereby, and there has been no material
     adverse change in the status, or financial effect on the Borrower or any of
     its Subsidiaries, of the Disclosed Litigation from that described on
     Schedule 3.01(a)(i) hereto.

          (k) The Borrower is not engaged in the business of extending credit
     for the purpose of purchasing or carrying Margin Stock, and no proceeds of
     any Advance will be used to purchase or carry any Margin Stock or to extend
     credit to others for the purpose of purchasing or carrying any Margin
     Stock.

          (l) The operations and properties of the Borrower and Subsidiaries
     comply in all material respects with all applicable Environmental Laws and
     Environmental Permits, except where the failure to be in such compliance
     could not reasonably be expected to have a Material Adverse Effect.

          (m) The Borrower and each of its Subsidiaries has filed, has caused to
     be filed or has been included in all tax returns (national, departmental,
     local, municipal and foreign) required to be filed and has paid or caused
     to be paid all taxes, assessments, fees and other charges shown thereon to
     be due, together with applicable interest and penalties, other than the
     payment of any taxes, assessment, fees or other charges (i) the nonpayment
     of which would not have a Material Adverse Effect or (ii) that are being
     contested in good faith and by proper proceedings and for which appropriate
     reserves are being maintained.

          (n) The obligations of the Borrower and each of its Subsidiaries under
     this Agreement, the Notes and each other Loan Document to which it is or is
     to be a party constitute direct, unconditional and unsubordinated
     obligations of the Borrower.

          (o) Set forth on Schedule 4.01(o) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all of the
     Liens created by, or otherwise existing on property of the Borrower and
     each of its Subsidiaries in favor of any other Person showing the parties
     listed as the secured parties thereunder, subject matter and term thereof,
     except for Liens created pursuant to the Loan Documents.

          (p) The Borrower and its Subsidiaries have valid and uncontested legal
     title to and are the beneficial owners of the Collateral and all of their
     respective other material properties and assets, free and clear of all
     Liens other than Permitted Liens and the Liens created pursuant to the Loan
     Documents.
<PAGE>

                                       53

          (q) The Borrower and each of its Subsidiaries is in compliance in all
     material respects with all applicable laws, ordinances, rules, regulations,
     and requirements of all governmental authorities (including without
     limitation certificates, permits, franchises and other governmental
     authorizations necessary to the ownership of its respective properties or
     to the conduct of its respective business, Environmental Laws and laws with
     respect to social security and pension fund obligations), except in each
     case to the extent where such failure to comply would not have a Material
     Adverse Effect.

          (r) Neither the Borrower nor any of its Subsidiaries is an "investment
     company", or an "affiliated person" of, or "promoter" or "principal
     underwriter" for, an "investment company", as such terms are defined in the
     Investment Company Act of 1940, as amended. Neither the making of any
     advance under this Agreement nor the application of the proceeds or
     repayment thereof by the Borrower, nor the consummation of the other
     transactions contemplated hereby, shall violate any provision of such Act
     or any rule, regulation or order thereunder.

          (s) The Borrower is, individually and together with its Subsidiaries,
     Solvent.

          (t) Set forth on Schedule 4.01(t) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all leases
     of real property (other than leases of cell sites) under which the Borrower
     or any of its Subsidiaries is the lessee, showing the street address,
     county or other relevant jurisdiction, state, lessor, lessee, expiration
     date and annual rental cost thereof.

          (u) Neither the Borrower nor any of its Subsidiaries has any patents,
     trademarks, trade names, service marks or copyrights that are material to
     the conduct of its business.

          (v) Set forth on Schedule 4.01(v) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of (i) all
     Existing Debt in excess of $250,000 showing the principal amount
     outstanding thereunder and (ii) the total aggregate amount of all Existing
     Debt equal to or less than $100,000.

          (w) Set forth on Schedule 4.01(w) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     Investments in excess of $100,000 held by the Borrower or any of its
     Subsidiaries, showing the amount, obligor or issuer and maturity, if any,
     thereof.

          (x) Set forth on Schedule 4.01(x) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     Material Contracts of the Borrower and its Subsidiaries, showing the
     parties thereto. Each such Material Contract
<PAGE>

                                       54

     has been duly authorized, executed and delivered by the Borrower or its
     Subsidiary, as the case may be, is in full force and effect and is binding
     upon and enforceable against the Borrower or its Subsidiary, as the case
     may be, in accordance with its terms except as such enforceability may be
     limited by (i) applicable bankruptcy, insolvency, liquidation, fraudulent
     conveyance, reorganization, concordato, moratorium or similar laws now or
     hereafter in effect affecting the enforcement of creditors' rights
     generally, and (ii) general principles of equity (regardless of whether
     such enforceability is considered in a proceeding at law or in equity), and
     there exists no default under any Material Contract by the Borrower or its
     Subsidiaries, as the case may be, which default could reasonably be
     expected to have a Material Adverse Effect.

          (y) Set forth on Schedule 4.01(y) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     licenses and spectrum rights (other than licenses relating to general
     business activities and the ownership and use of property applicable to
     persons generally and not specifically required to engage in business of
     the type proposed to be conducted by the Borrower and its Subsidiaries)
     providing for the right to operate the Networks in the Territory.

          (z) Set forth on Schedule 4.01(z) hereto, as amended from time to time
     pursuant to Section 5.03(u), is a complete and accurate list of all
     insurance policies naming the Lenders and the other Secured Creditors as
     loss payees thereunder. The amounts of such insurance and the risks covered
     thereby are the same as those provided for in the insurance policies
     usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Borrower or such
     Subsidiary operates and such insurance is sufficient to cover the risks
     associated with the conduct of the Borrower's or such Subsidiary's business
     and the Project.

          (aa) The activities of the Borrower's Subsidiaries contemplated by the
     Project and this Agreement are commercial in nature rather than
     governmental or public. The Borrower's Subsidiaries are not entitled to any
     right of immunity on the grounds of sovereignty with respect to such
     activities in any legal action or proceeding to enforce, or collect upon,
     or otherwise arising out of or relating to this Agreement, any of the other
     Loan Documents or Material Contracts.

          (bb) As of the date hereof, there is no tax, levy, impost, deduction,
     charge or withholding imposed, levied or made by or in any Core Territory
     or New York or any political subdivision or taxing authority thereof or
     therein (i) on or by virtue of the execution, delivery, performance,
     enforcement or admissibility into evidence of this Agreement or any of the
     other Loan Documents or (ii) on any payment to be made by the Borrower's
     Subsidiaries pursuant to this Agreement or any of the other Loan Documents,
     except that (A) all payments made under a Guaranty granted by the Operating
     Subsidiary that is a resident of Brazil will be subject to withholding
     income tax at the rate of 15% (or
<PAGE>

                                       55

     25% in case of payments made to a Person that is a resident of a country
     that does not tax income or taxes it at a maximum rate of 20%) or such
     lower rate as provided in an applicable tax treaty between Brazil and
     another country, and pursuant to Brazilian tax laws, a Brazilian Loan Party
     may pay such additional amounts as will result in receipt by the applicable
     payee of such amounts as would have been received by them had no such
     withholding been required; (B) (i) any interest payments made by an
     Argentine Loan Party may be subject to Argentine withholding tax at the
     current rate of 35%; (ii) a court tax of up to 3% of the amount in
     controversy imposed with respect to the institution of any judicial
     proceeding to enforce any claim in the City of Buenos Aires or in any other
     jurisdiction in Argentina; and (iii) each Chattel Mortgage registered
     pursuant to the Master Chattel Mortgage Agreement will be subject to
     registration fee of 0.2% of the amount secured by such Chattel Mortgage (in
     the case of the Province of Buenos Aires), and to a stamp tax at a rate of
     1.0% (subject to the provisions of the Fiscal Code of the Province of
     Buenos Aires) on the amount secured (in the case of the Province of Buenos
     Aires); (C) in the case of Colombia, the value of the foreclosure in any
     auction in Colombia is subject to a 3% tax and the payments made by the
     Colombian Operating Subsidiary to any Colombian trustee appointed under the
     Loan Documents may be subject to a tax; (D) in the case of Panama, (i)
     interest and other financial commissions and charges payable under the
     Credit Agreement allocated to the value of the credits assigned for the
     Panama operation would be subject to withholding tax at a 6% rate provided
     such payments were made from Panama and (ii) documentary taxes of US$1.00
     per US$1000.00 of face value would be payable on the Credit Agreement and
     the Security Agreements at the time of enforcement in a Panama court should
     this take place; and (E) in the case of Peru, payments of interest, fees,
     commissions and other expenses made by the Borrower under any Loan Document
     to Persons (excluding individuals) domiciled outside of Peru are subject to
     (1) Peruvian income withholding tax, at the current rate of 1%, so long as
     (x) the interest rate borne by the loans under the Loan Documents does not
     exceed LIBOR plus 7% or the Prime Rate plus 6%, (y) there is no economic
     link between the Borrower and the Lenders to whom such interest is paid and
     (z) the proceeds, if in cash, of the loans under the Loan Documents are
     received in Peru by the Borrower and (2) Peruvian value added tax (VAT) at
     a rate of 18%, solely to the extent such amounts are paid to non-banking,
     non-financial or non-credit institutions. With respect to Peru, (I) any
     portion of the interest rates applying to the loans under the Loan
     Documents that exceeds the rates specified in clause (ii)(E)(1)(x) above
     will be subject to taxation at a 30% income tax withholding rate; (II) if
     the conditions specified in clause (ii)(E)(1)(y) or (z) are not satisfied,
     interest on the relevant loans under the Loan Documents will be subject to
     taxation at a 30% income tax withholding rate (for this purpose, all
     expenses and commissions, premiums and any other sum payable in addition to
     interest agreed upon that are paid to a foreign beneficiary will also be
     considered as interest).

          (cc) (intentionally omitted)
<PAGE>

                                       56

          (dd) Set forth on Schedule 4.01(dd) hereto, as amended from time to
     time pursuant to Section 5.03(u), is a complete and accurate list of all
     Plans, Multiemployer Plans and Welfare Plans.

          (ee) No ERISA Event has occurred or is reasonably expected to occur
     with respect to any Plan that, when taken together with all other ERISA
     Events that are reasonably expected to occur with respect to any Plan,
     could reasonably be expected to have a Material Adverse Effect.

          (ff) Schedule B (Actuarial Information) to the most recent annual
     report (Form 5500 Series) for each Plan, copies of which have been filed
     with the Internal Revenue Service and furnished to the Lender Parties, is
     complete and accurate and fairly presents the funding status of such Plan,
     and since the date of such Schedule B there has been no material adverse
     change in such funding status.

          (gg) Neither any Loan Party nor any ERISA Affiliate has incurred or is
     reasonably expected to incur any Withdrawal Liability exceeding U.S.$50,000
     to any Multiemployer Plan.

          (hh) Neither any Loan Party nor any ERISA Affiliate has been notified
     by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
     reorganization or has been terminated, within the meaning of Title IV of
     ERISA, and no such Multiemployer Plan is reasonably expected to be in
     reorganization or to be terminated, within the meaning of Title IV of
     ERISA.

          (ii) Set forth on Schedule 4.01(ii) hereto, as amended from time to
     time pursuant to Section 5.03(u), is a complete and accurate list of all
     Licenses with respect to the ownership and operation of digital wireless
     local loop data networks constituting a portion of a Network in each of the
     Core Territories as well as any other part of the Territory that are
     necessary for the Borrower to fulfill the financial and operational
     projections set forth in the Borrower's business plan dated October 29,
     1999, including all Licenses with respect to rights to use spectrum in the
     15 GHz, 18 GHz, 23 GHz and 38 GHz bands.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

     SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower shall:
<PAGE>

                                       57

          (a) Compliance with Laws, Etc. Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with Environmental Laws, except when contested in
     good faith by appropriate proceedings and for which an adequate reserve has
     been established or where non-compliance could not reasonably be expected
     to have a Material Adverse Effect.

          (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all taxes, assessments and governmental charges or levies imposed upon
     it or upon its property and (ii) all lawful claims that, if unpaid, might
     by law become a Lien upon its property; provided that neither the Borrower
     nor any of its Subsidiaries shall be required to pay or discharge any such
     tax, assessment, charge, levy or claim that is being contested in good
     faith and by proper proceedings and as to which appropriate reserves are
     being maintained, unless and until any Lien resulting therefrom attaches to
     its property and becomes enforceable against its other creditors, or where
     non-payment could reasonably be expected to have a Material Adverse Effect.

          (c) Compliance with Environmental Laws. Comply, and cause each of its
     Subsidiaries and all lessees and other Persons occupying its properties to
     comply, in all material respects, with all Environmental Laws and
     Environmental Permits applicable to its operations and properties except
     where noncompliance could not reasonably be expected to have a Material
     Adverse Effect; obtain and renew, and cause each of its Subsidiaries to
     obtain and renew, all Environmental Permits necessary for its operations
     and properties except where the failure to do so could not reasonably be
     expected to have a Material Adverse Effect.

          (d) Maintenance of Insurance. Cause each Operating Subsidiary to
     maintain property and third-party liability insurance providing for the
     designation of the Collateral Agent as loss payee thereunder with reputable
     and internationally recognized insurance companies or associations in such
     amounts and covering such risks as is usually carried by companies engaged
     in similar businesses and owning similar properties in the same general
     areas in which such Operating Subsidiary operates, subject to the
     availability of such insurance on reasonable terms in the commercial
     insurance market.

          (e) Preservation of Existence, Etc. Preserve and maintain, and cause
     each of its Subsidiaries to preserve and maintain, its corporate existence
     and its rights (contractual and statutory) with respect to the Networks;
     provided that the Borrower and its Subsidiaries may consummate any merger
     or consolidation permitted under Section 5.02 (c); and provided further
     that neither the Borrower nor any of its Subsidiaries shall be required to
     preserve any right or franchise if the Board of Directors or the General
     Assembly of Partners, as the case may be, of the Borrower or such
     Subsidiary shall
<PAGE>

                                       58

     determine that the preservation thereof is no longer desirable in the
     conduct of the business of the Borrower or such Subsidiary, as the case may
     be, and that the loss thereof could not reasonably be expected to have a
     Material Adverse Effect.

          (f) Visitation Rights. At any reasonable time and from time to time
     upon reasonable advance notice, permit the Administrative Agent, the
     Collateral Agent or any of the Lenders or any agents or representatives
     thereof, to examine and make copies of and abstracts from the records and
     books of account of, and visit the properties of, the Borrower and any of
     its Subsidiaries, and to discuss the affairs, finances and accounts of the
     Borrower and any of its Subsidiaries with any of their officers or
     directors and with their independent certified public accountants (at which
     discussions representatives of the Borrower may be present if Borrower so
     desires).

          (g) Keeping of Books. Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Borrower and each such Subsidiary in accordance with GAAP, in each case
     to the extent necessary to enable the Borrower to comply with the periodic
     reporting requirements of this Agreement.

          (h) Maintenance of Properties, Etc. Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear and obsolescence excepted, and
     not commit or suffer any waste with respect to any of its respective
     properties except where the failure to do so could not reasonably be
     expected to have a Material Adverse Effect.

          (i) Compliance with Terms of Leaseholds. (i) Make all payments and
     otherwise perform all obligations in respect of all leases of real property
     to which it is a party, keep such leases in full force and effect and use
     commercially reasonable efforts to not allow such leases to lapse or to be
     terminated or any rights to renew such leases to be forfeited or canceled,
     notify the Administrative Agent and the Collateral Agent of any default by
     any party with respect to such leases and cooperate with the Administrative
     Agent and the Collateral Agent in all respects to cure any such default,
     and cause each of its Subsidiaries to do so except where the failure to do
     so could not, individually or cumulatively, reasonably be expected to have
     a Material Adverse Effect and (ii) request, and cause each Operating
     Subsidiary to request, that any landlord, mortgagee or easement grantor of
     such Operating Subsidiary give the Collateral Agent and the Administrative
     Agent, on a best-efforts basis, notice of any default on the part of the
     applicable Operating Subsidiary under any agreement with such Operating
     Subsidiary and allow the Collateral Agent and its agents to inspect and
     remove Collateral after the occurrence and during the continuance of an
     Event of Default.
<PAGE>

                                       59

          (j) Performance of Material Contracts. Except where the failure to do
     so could not reasonably be expected to have a Material Adverse Effect,
     perform and observe in all material respects all the terms and provisions
     of each Material Contract to be performed or observed by it, maintain each
     such Material Contract in full force and effect and enforce each such
     Material Contract in accordance with its terms. For the purposes of this
     Agreement, a voluntary termination or suspension of a Material Contract by
     the Borrower in accordance with the terms and conditions thereof shall be
     deemed to not have a Material Adverse Effect.

          (k) New Operating Subsidiaries and Intermediate Holding Company
     Subsidiaries. Upon the creation of any Operating Subsidiary or Intermediate
     Holding Company Subsidiary not in existence on the date hereof or upon an
     Insignificant Subsidiary's becoming an Operating Subsidiary or an
     Intermediate Holding Company Subsidiary, the Borrower will at its expense:

               (i) cause such Subsidiary to duly execute and deliver to the
          Administrative Agent and the Collateral Agent a Guaranty substantially
          in the form of Exhibit D-2 (for Intermediate Holding Company
          Subsidiaries) or D-1 (for Operating Subsidiaries);

               (ii) cause such Subsidiary to duly execute and deliver to the
          Administrative Agent and the Collateral Agent an Operating Subsidiary
          Security Agreement or Intermediate Holding Company Security Agreement,
          as applicable (with such changes thereto as the Administrative Agent
          may reasonably request) and such other mortgages, pledges, assignments
          and other security agreements, in form and substance reasonably
          satisfactory to the Agents, securing payment of all of the obligations
          of such Subsidiary under the Guaranty and the obligations of the Loan
          Parties under this Agreement and constituting Liens on all Collateral
          described therein; and pledge, or cause to be pledged, to the
          Collateral Agent on behalf of the Secured Parties, all authorized,
          issued and outstanding capital stock or capital contributions of such
          Subsidiary; and execute and/or deliver to the Administration Agent
          each other document or instrument required to be delivered in
          connection with the execution and delivery of such Operating Security
          Agreement or Intermediate Holding Company Security Agreement;

               (iii) deliver to the Administrative Agent a signed copy of
          favorable opinions, addressed to the Agents and the Lenders, of
          counsel for the Borrower reasonably acceptable to the Administrative
          Agent as to such matters relating to such Operating Subsidiary as
          either Agent may reasonably request;
<PAGE>

                                       60

               (iv) deliver to the Administrative Agent a copy of a
          process-agent letter for such Subsidiary if it is organized in a
          jurisdiction outside the United States; and

               (v) at any time and from time to time, promptly execute and
          deliver any and all further instruments and documents and take all
          such other action as either Agent may deem desirable in obtaining the
          full benefits of or in preserving the Liens of each Security Agreement
          delivered pursuant to this Section 5.01(k) and mortgages and other
          agreements and instruments entered into by such Operating Subsidiary.

          (l) Obtain and Maintain Licenses and Permits. Obtain, maintain and
     comply and cause each of its Subsidiaries to obtain, maintain and comply
     with all licenses, permits, approvals or consents and the Licenses and the
     Regulatory Permits required to conduct the Borrower's and its Subsidiaries
     business in the Territory and make all payments when due of all amounts
     owing in respect of the Licenses and any spectrum clearances except (with
     respect to Licenses other than Material Licenses) where the failure to do
     so could not reasonably be expected to have a Material Adverse Effect.

          (m) Maintain Governmental Approvals. Obtain and maintain, and cause
     each of its Subsidiaries to obtain and maintain, in full force and effect
     all governmental approvals that may be required for the validity or
     enforceability of this Agreement, the Notes, each other Loan Document, and
     any other agreement entered into in connection with the transactions
     contemplated hereby and thereby.

          (n) No Transfer of Licenses. Maintain or cause its Subsidiaries to
     maintain the Licenses and refrain from transferring any such Licenses to a
     third party without prior written approval of the Lenders, except (with
     respect to Licenses other than Material Licenses) where the failure to do
     so could not reasonably be expected to have a material adverse effect on
     the ability of the Borrower to perform its payment obligations under the
     Loan Documents.

          (o) Syndication Matters. At the Borrower's expense, (i) promptly and
     in any event within 30 days after being requested to do so by the Initial
     Lender, prepare an information memorandum reasonably satisfactory to the
     Initial Lender in form and scope customary for information memoranda
     prepared for loan syndications of similar borrowers, thereafter upon
     reasonable notice from the Initial Lender provide reasonable updates of the
     information contained in such information memorandum and at the time of
     delivery of such update cause such information memorandum not to contain
     any untrue statement of material fact or omit to state a material fact
     necessary to make the statements made therein not misleading during such
     period, (ii) make senior managers of the Borrower and its Subsidiaries
     reasonably available at meetings with prospective lenders
<PAGE>

                                       61

     in connection with the syndication of this Agreement, (iii) do such other
     acts and things as the Lender may reasonably request that are customary in
     connection with the syndication of credit agreements in order successfully
     to syndicate this Agreement and (iv) at the Lenders' expense, cooperate,
     and cause the Borrower to cooperate, with the Lenders in obtaining
     political risk insurance.

          (p) Consularization, Etc. At the Borrower's expense, take such actions
     with respect to any Loan Document as may by necessary or appropriate or
     reasonably requested by any Agent or Lender in any jurisdiction where any
     Loan Party is located in order to ensure the validity or enforceability of
     the Loan Documents against the Loan Parties in such jurisdictions,
     including without limitation the consularization of the Loan Documents
     where the laws of the relevant Core Territory may so require.

          (q) Additional Collateral. To the extent the cost of creating,
     perfecting and maintaining a Lien on any such Collateral does not,
     individually or in the aggregate, exceed the value of any recovery proceeds
     reasonably expected to be obtained by the Collateral Agent in connection
     with the enforcement of such Lien against such Collateral, within 30 days
     after delivering the report required pursuant to Section 5.03(t) with
     respect to additional Collateral, cause such relevant Operating Subsidiary,
     at its expense, to assign and pledge to the Collateral Agent for the
     benefit of the Secured Creditors the property described in such report,
     except such property encumbered by Liens permitted pursuant to Section
     5.02(b)(vi), pursuant to Security Agreements and other instruments
     satisfactory in form and substance to the Collateral Agent; and will cause
     such Operating Subsidiary to make such registrations and filings, and do
     such other or further acts and things as may be necessary to perfect the
     Lien of the Collateral Agent in respect of such property. The Borrower or
     such Subsidiary, as the case may be, shall not be required to assign or
     pledge any such property if such assignment or pledge is not permitted
     under any applicable laws.

     SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will not:

          (a) Indebtedness. Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Debt, other than:

               (i) Debt owing hereunder and Existing Debt,

               (ii) Debt created under Hedge Agreements entered into by the
          Borrower,

               (iii) Debt of any Person that becomes a Subsidiary of the
          Borrower after the date hereof in accordance with the terms of Section
          5.02(k)(i) which
<PAGE>

                                       62

          Debt is existing at the time such Person becomes a Subsidiary of the
          Borrower (other than Debt incurred solely in contemplation of such
          Person becoming a Subsidiary of the Borrower),

               (iv) Subordinated Debt,

               (v) Debt of the Borrower to any of its Subsidiaries, or of a
          Subsidiary to the Borrower or to a Subsidiary of the Borrower;
          provided that such Debt shall have been pledged to the Collateral
          Agent,

               (vi) Debt incurred in connection with the entering into by the
          Borrower or a Subsidiary thereof of Capitalized Leases in aggregate
          principal amount (including any such Debt incurred to refinance such
          Debt, as permitted by clause (xii) below) at any one time outstanding
          not exceeding (A) $50,000,000, with respect to any indefeasible rights
          of use of fiber and (B) $10,000,000, with respect to Capitalized
          Leases other than indefeasible rights of use of fiber,

               (vii) Secured Debt for the purpose of financing working-capital
          requirements of the Borrower and its Subsidiaries in an aggregate
          principal amount (including any such Debt incurred to refinance such
          Debt, as permitted by clause (xii) below) at any time outstanding not
          exceeding 10% of Contributed Capital at such time; provided that upon
          the incurrence of such Debt the creditors thereof shall become parties
          to the Intercreditor Agreement,

               (viii) Secured Debt (including Debt under the Lucent Credit
          Agreement) incurred for the purchase price of property or services to
          be used for the conduct of the Borrower's or any of its Subsidiary's
          business; provided that, immediately upon incurrence of such Debt, the
          Borrower shall be in compliance with the terms of Sections 5.04(d),
          (e), (f) and (g) and provided further that upon the incurrence of
          Secured Debt pursuant to this clause, the creditors thereof shall
          become parties to the Intercreditor Agreement,

               (ix) Intercompany Mirror Subordinated Debt,

               (x) Debt incurred to finance the purchase price of equipment or
          other property ancillary to the Borrower's business and secured by
          Liens permitted under Section 5.02(b)(vi), in an aggregate principal
          amount (including any such Debt incurred to refinance such Debt, as
          permitted by clause (xii) below) at any time outstanding not exceeding
          1% of Contributed Capital at such time,

               (xi) Debt in the form of Back-to-Back Loans, and
<PAGE>

                                       63

               (xii) Debt incurred in connection with the refinancing of any
          Debt which may be incurred under clauses (i) through (xi) above;
          provided that (A) such Debt does not exceed the amount of Debt being
          refinanced, (B) in the case of the refinancing of any Subordinated
          Debt, any such Debt shall also be subordinated on substantially the
          same terms and (C) in the case of Intercompany Mirror Subordinated
          Debt, such Debt still qualifies as Intercompany Mirror Subordinated
          Debt;

     provided that at the time of incurrence of any of the Debt referred to in
     clauses (i) to (ix) above, and immediately after giving effect thereto, no
     event has occurred and is continuing that constitutes a Default.

          (b) Liens, Etc. Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties, whether now owned or
     hereafter acquired, or assign, or permit any of its Subsidiaries to assign,
     any right to receive income, other than

               (i) Liens created under the Loan Documents,

               (ii) Permitted Liens,

               (iii) Shared Liens,

               (iv) Liens existing on the date hereof and described on Schedule
          4.01(o) hereto,

               (v) Liens arising in connection with Capitalized Leases permitted
          under Section 5.02(a)(vi); provided that no such Lien shall extend to
          or cover any Collateral or assets other than the assets subject to
          such Capitalized Leases,

               (vi) purchase money Liens to secure Debt incurred in accordance
          with Section 5.02(a)(x); provided that no such Lien shall extend to or
          cover any property other than the property being acquired, and no
          extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced,

               (vii) Liens arising in connection with the lease or transfer of
          Customer Premise Equipment permitted under Section 5.02(j)(vi),

               (viii) Liens on Blocked Accounts created under the Blocked
          Account Letter Agreements (as each term is defined both herein and in
          the Lucent Credit Agreement), and
<PAGE>

                                       64

               (ix) the replacement, extension or renewal of any Lien permitted
          by clauses (iii) through (viii) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount or change in any direct or contingent
          obligor) of the Debt secured thereby.

          (c) Mergers, Etc. Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that (i) any Subsidiary of the Borrower may merge into or
     consolidate with any other Subsidiary of the Borrower so long as the Person
     formed by such merger or consolidation is a Subsidiary of the Borrower,
     (ii) any of the Borrower's Subsidiaries may merge into the Borrower so long
     as the Borrower is the surviving corporation and (iii) the Borrower or any
     of its Subsidiaries may merge with any other Person so long as, in the case
     of any such merger to which the Borrower is a party, the Borrower is the
     surviving corporation and, in the case of any such merger to which a
     Subsidiary of the Borrower is a party, such Subsidiary is the surviving
     corporation; provided that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (d) Changes in Fiscal Year. Make or permit any change in its fiscal
     year or permit any of its Subsidiaries to make or permit any change in its
     fiscal year.

          (e) Transactions with Affiliates. Either (i) enter into or permit any
     Subsidiary to enter into any agreement or arrangement with any Affiliate of
     the Borrower if such agreement or arrangement contains pricing and terms
     that provide to such Affiliate fees, profits, premiums or terms materially
     in excess of or materially more favorable than the fees, profits, premiums
     or terms that the Borrower or a Subsidiary thereof could reasonably be
     expected to pay or provide to a third party in connection with a similar
     transaction, other than agreements providing for management fees payable by
     an Operating Subsidiary to the Borrower or (ii) without limiting the
     foregoing, enter into or permit any Subsidiary to enter into any
     tax-sharing agreement or arrangement with the Parent or any other Person
     pursuant to which the Borrower and its Subsidiaries will make any payments
     or agree to make any payments in lieu of income taxes unless the cumulative
     sum of such payments does not exceed to any material extent the cumulative
     sum of income taxes that the Borrower and its Subsidiaries would have paid
     if the Borrower and its Subsidiaries had always filed income tax returns on
     a consolidated basis as a separate affiliated group (as such term is
     defined in section 1504(a) of the Internal Revenue Code of 1986) of
     corporations consisting of only the Borrower and its Subsidiaries.

          (f) Other Business. Engage or permit any Subsidiary to engage,
     directly or indirectly, in any business other than the offering of data,
     voice or video services,
<PAGE>

                                       65

     whether as a competitive access provider, a competitive local exchange
     carrier or an Internet access provider other than in the Territory.

          (g) Modification of Organizational Documents. Modify or permit any
     Subsidiary to modify its organizational documents in a manner that affects
     materially and adversely the fulfillment of its or such Subsidiary's
     obligations under any Loan Document to which it or such Subsidiary is a
     party or changes in any material respect the nature of its or such
     Subsidiary's business, its accounting policies or reporting practices.

          (h) Amendment; Etc. of Material Contracts. Cancel or terminate any
     Material Contract or consent to or accept any cancellation or termination
     thereof, amend or otherwise modify any Material Contract or give any
     consent, waiver or approval thereunder, waive any default under or any
     breach of any Material Contract or agree in any manner to any other
     amendment, modification or change of any term or condition of any Material
     Contract if any of such actions could reasonably be expected to result in a
     Material Adverse Effect or take any other action in connection with any
     Material Contract that would impair the value of the interest or rights of
     the Borrower thereunder or that would impair the interest or rights of the
     Administrative Agent or any Lender thereunder, or permit any of its
     Subsidiaries to do any of the foregoing if any of such actions could
     reasonably be expected to result in a Material Adverse Effect.

          (i) Negative Pledge. Enter into or suffer to exist, or permit any of
     its Subsidiaries to enter into or suffer to exist, any agreement
     prohibiting or conditioning the creation or assumption of any Lien upon any
     of its property or assets except (i) in favor of the Secured Creditors or
     (ii) in connection with (A) any Capitalized Lease permitted by Section
     5.02(a)(vi) solely to the extent that such Capitalized Lease prohibits a
     Lien on the property subject thereto or (B) any Debt outstanding on the
     date any Subsidiary of the Borrower becomes such a Subsidiary (so long as
     such agreement was not entered into solely in contemplation of such
     Subsidiary becoming a Subsidiary of the Borrower).

          (j) Sales of Assets. Sell, lease, transfer, liquidate, wind up or
     otherwise dispose of, or permit any of its Subsidiaries to sell, lease,
     transfer, liquidate, wind up or otherwise dispose of, any Collateral or any
     substantial part of its assets other than Collateral, including without
     limitation substantially all assets constituting the business of a
     division, branch or other unit operation, or grant any option or other
     right to purchase, lease or otherwise acquire any Collateral other than
     inventory to be sold in the ordinary course of its business, except:

               (i) sales and disposal of inventory in the ordinary course of
          business,

               (ii) in a transaction authorized by subsection (c) of this
          Section 5.02,
<PAGE>

                                       66

               (iii) sales of Material Assets for cash and for fair value in an
          aggregate amount not to exceed $10,000,000 in any fiscal year, the Net
          Cash Proceeds of which are applied in accordance with Section 2.08(b),

               (iv) the limited recourse sale of accounts receivable in
          connection with the securitization thereof, which sale is non-recourse
          to the extent customary in securitizations, the Net Cash Proceeds of
          which are applied in accordance with Section 2.08(b),

               (v) sales and disposal of obsolete equipment in the ordinary
          course of business,

               (vi) sales, leases and transfers of Customer Premise Equipment in
          the ordinary course of business, and

               (vii) sales of other assets for cash and for fair value in an
          aggregate amount not to exceed $2,500,000 in any fiscal year.

          (k) Investments in Other Persons. Make or hold, or permit any of its
     Subsidiaries to make or hold, any Investment in any Person other than:

               (i) Investments by the Borrower and its Subsidiaries in their
          Insignificant Subsidiaries, Operating Subsidiaries and Intermediate
          Holding Company Subsidiaries outstanding on the date hereof and
          additional investments in Insignificant Subsidiaries, Operating
          Subsidiaries and Intermediate Holding Company Subsidiaries engaged in
          businesses permitted under Section 5.02(f) in the Core Territories;
          provided that:

                    (A) the Borrower shall have complied with the provisions set
               forth in Section 5.01(k),

                    (B) each Operating Subsidiary shall be a Wholly Owned
               Subsidiary of the Borrower or an Intermediate Holding Company
               Subsidiary,

                    (C) in the case of any such Subsidiary created after the
               date hereof, such Subsidiary shall be a Wholly Owned Subsidiary,

                    (D) in the case of any Intermediate Holding Company
               Subsidiary in existence on the date hereof, the Borrower shall
               directly hold 100% of each class and series of Equity Interests
               of such Subsidiary;
<PAGE>

                                       67

               (ii) loans and advances to employees in the ordinary course of
          the business of the Borrower and its Subsidiaries as presently
          conducted in an aggregate principal amount not to exceed $250,000, at
          any time outstanding;

               (iii) Investments by

                    (A) the Operating Subsidiaries in Cash Equivalents in an
               aggregate amount not to exceed $20,000,000 at any one time
               outstanding, and

                    (B) any Intermediate Holding Company Subsidiary in Cash
               Equivalents in an aggregate amount not to exceed $5,000,000 at
               any one time outstanding; provided that no Intermediate Holding
               Company Subsidiary shall maintain any such Investment for more
               than five Business Days;

               (iv) Investments existing on the date hereof and described on
          Schedule 4.01(w) hereto;

               (v) Investments by the Borrower in Hedge Agreements permitted
          under Section 5.02(a)(ii); provided that the transactions contemplated
          by such agreements do not violate the provisions of Section 5.02(t);

               (vi) Investments consisting of intercompany Debt permitted under
          Section 5.02(a)(v);

               (vii) Investments by the Borrower or an Intermediate Holding
          Company Subsidiary in Back-to-Back Loans; and

               (viii) Investments by the Borrower and its Subsidiaries in the
          capital stock of:

                    (A) Subsidiaries engaged in businesses permitted under
               Section 5.02(f) in any country other than any Core Territory in
               an aggregate amount invested not to exceed $25,000,000 at any
               time outstanding and as to which the Borrower shall have complied
               with its obligations under Section 5.01(k), and

                    (B) Companies engaged in businesses permitted under Section
               5.02(f) (I) in any Core Territory, in an aggregate not to exceed
               $35,000,000 in any calendar year or (II) in the Territory other
               than in any Core Territory in an aggregate not to exceed
               $15,000,000 amount at any
<PAGE>

                                       68

               time outstanding; provided that in each case any capital stock so
               acquired shall have been pledged to the Collateral Agent for the
               benefit of the Lenders within 30 days after such acquisition
               pursuant to security agreements and other instruments reasonably
               satisfactory in form and substance to the Required Lenders and
               the Person making such Investments shall have taken such other
               action with respect to such collateral security as would be
               required under Section 5.01(k) with respect to collateral
               security if such Person were a newly created Subsidiary of the
               Borrower.

               (l) Restricted Payments. Declare or pay or make any Restricted
          Payment or permit any of its Subsidiaries to make any Restricted
          Payment, except that the Borrower may

                    (i) make scheduled payments of interest in respect of
               Intercompany Mirror Subordinated Debt at any time after December
               31, 2001, so long as no Default has occurred and is continuing at
               the time of or after giving effect to any such payment; and

                    (ii) make a cash distribution to the Parent in respect of
               tax obligations of the Parent due in respect of (I) the existence
               of the Parent or (II) the activities of the Borrower or any of
               its Subsidiaries, but in either case only to the extent that such
               distribution would be permitted under tax-sharing agreements or
               arrangements permitted under Section 5.02(e).

               (m) Prepayments of Debt. Prepay:

                    (i) any Subordinated Debt and Intercompany Mirror
               Subordinated Debt, or

                    (ii) any other Debt, other than Debt permitted under Section
               5.02(a)(vi), (x) or (xi), unless the Borrowings and such other
               Debt shall be ratably prepaid in accordance with the respective
               then outstanding aggregate principal amounts thereof.

               (n) Liquidation, Etc. of Business. Wind up, dissolve or liquidate
          the Borrower or any of its Subsidiaries except as permitted under
          Section 5.01(e), or abandon its conduct of its business in the
          Territory.

               (o) Gross PP&E. Make or permit its Subsidiaries to make any
          Capital Expenditures that would cause the Gross PP&E of the Borrower
          and its Subsidiaries in any period set forth below to exceed the
          amount set forth below for such period.
<PAGE>

                                       69

<TABLE>
<CAPTION>
               Year Ending In                     Amount
                --------------                    ------
<S>                                            <C>
                    12/31/99                   $ 52,000,000
                    12/31/00                   $156,500,000
                    12/31/01                   $253,000,000
                    12/31/02                   $377,500,000
                    12/31/03                   $450,500,000
                    12/31/04                   $523,500,000
                    12/31/05                   $616,300,000
                    12/31/06                   $720,300,000
</TABLE>

               (p) Lease Obligations. Create, incur, assume or suffer to exist,
          or permit any of its Subsidiaries to create, incur, assume or suffer
          to exist:

                    (i) any obligations as lessee for the rental or hire of real
               or personal property of any kind under leases or agreements to
               lease having a term of one year or more from the date of
               execution thereof (other than Capitalized Leases) that would
               cause the direct and contingent liabilities of it and its
               Subsidiaries, on a Consolidated basis, in respect of all such
               obligations in any period set forth below to exceed the amount
               set forth below for such period;

<TABLE>
<CAPTION>
               Year Ending In                     Amount
                --------------                    ------
<S>                                            <C>
                    12/31/99                   $ 7,500,000
                    12/31/00                   $12,500,000
                    12/31/01                   $17,500,000
                    12/31/02                   $22,500,000
                    12/31/03                   $27,500,000
                    12/31/04                   $47,500,000
                    12/31/05                   $57,500,000
                    12/31/06                   $72,500,000
</TABLE>

               or

                    (ii) any obligations under Capitalized Leases that would
               cause the direct and contingent liabilities of it and its
               Subsidiaries, on a Consolidated basis, in respect of all such
               obligations to exceed at any time (A) $50,000,000, with
<PAGE>

                                       70

               respect to indefeasible rights of use of fiber and (B)
               $10,000,000, with respect to Capitalized Leases other than
               indefeasible rights of use of fiber.

               (q) Restrictions on Activities. Conduct any significant business
          other than holding Equity Interests of Intermediate Holding Company
          Subsidiaries and incurring liabilities and holding Investments
          permitted under this Agreement or permit any of its Intermediate
          Holding Company Subsidiaries to:

                    (i) hold any assets that would cause them to fail to qualify
               as Intermediate Holding Company Subsidiaries,

                    (ii) incur debt or other liabilities other than intercompany
               loans under Section 5.02(a)(v), and

                    (iii) conduct any significant business other than holding
               the capital stock or contributions of, providing managerial
               oversight for and supporting and consolidating the corporate
               functions of, an Operating Subsidiary or Intermediate Holding
               Company Subsidiary.

               (r) Payment Restrictions Affecting Subsidiaries. Directly or
          indirectly, enter into or suffer to exist, or permit any of its
          Subsidiaries to enter into or suffer to exist, any agreement or
          arrangement limiting the ability of any of its Subsidiaries to declare
          or pay dividends or other distributions in respect of its Equity
          Interests or repay or prepay any Debt owed to, make loans or advances
          to, or otherwise transfer assets to or invest in, the Borrower or any
          Subsidiary of the Borrower (whether through a covenant restricting
          dividends, loans, asset transfers or investments, a financial covenant
          or otherwise), except the Loan Documents.

               (s) Partnerships, Etc. Become a general partner in any general or
          limited partnership or joint venture, or permit any of its
          Subsidiaries to do so.

               (t) Speculative Transactions. Engage, or permit any of its
          Subsidiaries to engage, in any transaction involving commodity options
          or futures contracts or any similar speculative transactions.

               (u) Issuance of Capital Stock or Contributions by Subsidiaries.
          Permit any of its Subsidiaries to issue any capital stock or
          contributions to any Person other than to the Borrower or a Wholly
          Owned Subsidiary of such Subsidiary, except pursuant to any agreement
          in effect and listed in the form of Schedule 5.02(u).

               (v) Speculative Build-Outs. Install or permit any of its
          Subsidiaries to install a portion of any Network intended to provide
          direct service to end-user customers (a
<PAGE>

                                       71

          "Tributary") in any building unless there is at least one bona fide
          significant customer using such Tributary in such building, except
          that for every 100 buildings in which such a Tributary is installed, a
          Tributary may be installed in one building for which there is not any
          such customer.

     SECTION 5.03. Reporting Requirements. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower shall
furnish to the Lenders:

          (a) as soon as available and in any event within 15 days after the end
     of each fiscal month of the Borrower, for a period of 12 months from the
     date hereof (i) internal summary financial and operating statements for
     such month, prepared by the Borrower's management for its chief executive
     officer and (ii) a memorandum or letter discussing such internal summary
     financial and operating statements and comparing such financial information
     to the pro forma financial information for such period set forth in the
     business plan delivered pursuant to Section 3.01(i)(ii);

          (b) as soon as available and in any event within 45 days after the end
     of each of the first three quarters of each fiscal year of the Borrower (i)
     internal summary financial and operating statements for such quarter,
     prepared by the Borrower's management for its chief executive officer and
     (ii) a memorandum or letter discussing such internal summary financial and
     operating statements and comparing such financial information to the pro
     forma financial information for such period set forth in the budget for
     such period delivered pursuant to Section 5.03(r);

          (c) as soon as available and in any event within 45 days after the end
     of each of the first three quarters of each fiscal year of the Borrower,
     Consolidated and consolidating balance sheets of the Borrower and its
     Subsidiaries as of the end of such quarter and Consolidated and
     consolidating statements of income and cash flows of the Borrower and its
     Subsidiaries for the period commencing at the end of the previous fiscal
     year and ending with the end of such quarter, and, with respect to the
     second fiscal quarter of any fiscal year of the Borrower, a certificate of
     the chief financial officer of the Borrower (a "Compliance Certificate")
     (i) duly certifying (subject to year-end adjustment audits) that such
     balance sheets and statements of income and cash flow have been prepared in
     accordance with GAAP and stating that, to the knowledge of such chief
     financial officer, no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Borrower has taken and proposes to take
     with respect thereto and (ii) attesting to the number of Voice Grade
     Equivalents as of the end of such fiscal quarter;

          (d) as soon as available and in any event within 120 days (or, after
     the consolidated group of companies of which the Borrower is part is
     subject to the reporting
<PAGE>

                                       72

     requirements of the Securities and Exchange Act of 1934, 90 days) after the
     end of each fiscal year of the Borrower, a copy of the annual audit report
     for such year for the Borrower and its Subsidiaries, containing
     Consolidated and consolidating balance sheets of the Borrower and its
     Subsidiaries as of the end of such fiscal year and Consolidated and
     consolidating statements of income and cash flows of the Borrower and its
     Subsidiaries for such fiscal year, in each case accompanied by (i) an
     opinion acceptable to the Required Lenders from a firm of nationally
     recognized independent certified public accountants, together with (A) a
     certificate of such accounting firm to the Lenders stating that in the
     course of the regular audit of the business of the Borrower and its
     Subsidiaries, which audit was conducted by such accounting firm in
     accordance with GAAP, such accounting firm has obtained no knowledge that
     would cause them to believe that a Default has occurred and is continuing,
     or if, in the opinion of such accounting firm, a Default has occurred and
     is continuing, a statement as to the nature thereof and (B) a schedule in
     form satisfactory to the Administrative Agent of the computations used by
     such accountants in determining, as of the end of such fiscal year,
     compliance with the covenants contained in Section 5.04 and (ii) a
     certificate of the chief financial officer of the Borrower (A) stating that
     to his or her knowledge no Default has occurred and is continuing or, if a
     default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Borrower has taken and proposes to take
     with respect thereto and (B) attesting to the number of Voice Grade
     Equivalents as of the end of such fiscal year;

          (e) promptly upon the discovery of the occurrence or existence
     thereof, notice of (i) any Default under this Agreement, the Notes or the
     Security Agreements, along with a statement of the Chief Executive Officer
     or Chief Financial Officer of the Borrower setting forth the details of
     such Default and the action that the Borrower has taken and proposes to
     take with respect thereto, (ii) any event, development or circumstance
     which would cause the financial statements most recently furnished to the
     Lenders in accordance with Section 5.03(c) or (d) to fail in any material
     respect to fairly present, in accordance with GAAP, the financial condition
     and operating results of the Borrower and its Subsidiaries as of the date
     of such financial statements, and (iii) the occurrence of a Material
     Adverse Effect;

          (f) promptly after the commencement thereof, notice of all actions,
     suits, investigations, litigation and proceedings before any court or
     governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, affecting any Loan Party or any of
     its Subsidiaries of the type described in Section 3.01(a), and promptly
     after the occurrence thereof, notice of any adverse change in the status or
     the financial effect on any Loan Party or any of its Subsidiaries of the
     Disclosed Litigation from that described on Schedule 3.01(a)(i) hereto;
<PAGE>

                                       73

          (g) (i) promptly and in any event within 10 days after the Borrower or
     any ERISA Affiliate knows or has reason to know that any ERISA Event has
     occurred, a statement of the chief executive officer or chief financial
     officer of the Borrower describing such ERISA Event and the action, if any,
     that the Borrower or such ERISA Affiliate has taken and proposes to take
     with respect thereto and (ii) on the date any records, documents or other
     information must be furnished to the PBGC with respect to any Plan pursuant
     to Section 4010 of ERISA, a copy of such records, documents and
     information;

          (h) promptly and in any event within three Business Days after receipt
     thereof by the Borrower or any ERISA Affiliate, copies of each notice from
     the PBGC stating its intention to terminate any Plan or to have a trustee
     appointed to administer any Plan;

          (i) promptly and in any event within 30 days after the receipt thereof
     by the Borrower or any ERISA Affiliate, a copy of the annual actuarial
     report for each Plan the funded current liability percentage (as defined in
     Section 302(d)(8) of ERISA) of which is less than 90% or the unfunded
     current liability of which exceeds $1,000,000;

          (j) promptly and in any event within five Business Days after receipt
     thereof by the Borrower or any ERISA Affiliate from the sponsor of a
     Multiemployer Plan, copies of each notice concerning (i) the imposition of
     Withdrawal Liability by any such Multiemployer Plan, (ii) the
     reorganization or termination, within the meaning of Title IV of ERISA, of
     any such Multiemployer Plan or (iii) the amount of liability incurred, or
     that may be incurred, by the Borrower or any ERISA Affiliate in connection
     with any event described in clause (i) or (ii);

          (k) as soon as available and in any event not later than 60 days after
     the end of each fiscal year of the Borrower, an updated business plan of
     the Borrower approved by its Board of Directors, with respect at least to
     the period ending on the fifth anniversary of the Tranche A Effective Date,
     including projections and budgets and otherwise in substantially the form
     and scope of the business plan delivered pursuant to Section 3.01(i)(ii);

          (l) promptly after the sending or filing thereof, copies of all proxy
     statements, financial statements and reports that any Loan Party or any of
     its Subsidiaries sends to its stockholders or partners, and copies of all
     regular, periodic and special reports, and all registration statements,
     that any Loan Party or any of it Subsidiaries filed with the Securities and
     Exchange Commission or any governmental authority that may be substituted
     therefor, or with any national securities exchange;

          (m) promptly after the furnishing thereof, copies of any statement or
     report furnished to any holder of Debt securities of any Loan Party or of
     any of its Subsidiaries
<PAGE>

                                       74

     pursuant to the terms of any indenture, loan or creditor similar agreement
     and not otherwise required to be furnished to the Lender Parties pursuant
     to any other clause of this Section 5.03;

          (n) promptly upon receipt thereof, copies of all notices of default
     received by any Loan Party or any of its Subsidiaries under or pursuant to
     any License, Material Contract or instrument, indenture, loan or credit or
     similar agreement and, from time to time upon request by the Administrative
     Agent, such information and reports regarding the Licenses, the Material
     Contracts and such instruments, indentures and loan and credit and similar
     agreements as the Administrative Agent may reasonably request;

          (o) promptly after the assertion or occurrence thereof, notice of any
     Environmental Action against or of any noncompliance by any Loan Party or
     any of its Subsidiaries with any Environmental Law or Environmental Permit
     that could reasonably be expected to have a Material Adverse Effect;

          (p) promptly after the adoption by the Borrower or any of its
     Subsidiaries thereof, notice of any change in the accounting policies and
     reporting practices of such Borrower or Subsidiary;

          (q) promptly upon receipt thereof, any additional reports, management
     letters or other detailed information concerning significant aspects of
     Borrower's operations or financial affairs prepared by the Borrower's
     independent accounts and provided to the Board of Directors of the Borrower
     (and not otherwise contained in other materials provided hereunder);

          (r) at least 30 days but not more than 90 days prior to the beginning
     of each fiscal year, an annual budget prepared on a monthly basis for the
     Borrower for such fiscal year (displaying anticipated statements of income
     and cash flows and balance sheets) and any revisions of such annual or
     other budgets;

          (s) such other information respecting the Borrower or any of its
     Subsidiaries as any Lender through the Administrative Agent may from time
     to time reasonably request;

          (t) (i) for each Core Territory in which the Licenses are not subject
     to a perfected Lien in favor of the Collateral Agent, within 30 days after
     (A) the date falling 45 days after the beginning of each fiscal quarter and
     (B) the end of each fiscal quarter, and (ii) in each other Core Territory,
     within 30 days after the end of each fiscal quarter, a list of all real
     property with an aggregate value in excess of $50,000 and personal property
     with an aggregate value in excess of $10,000 in each case located in such
     Core Territory and including in each case, without limitation, all accounts
     receivable, assets
<PAGE>

                                       75

     acquired through capital expenditures and general intangibles, that have
     been acquired by the Borrower or any Subsidiary thereof and not included in
     any prior report under this Section 5.03(t) and as to which the Collateral
     Agent does not have a perfected Lien; and

          (u) as of the date of any Advance subsequent to the initial Advance,
     amended forms of Schedules 4.01(b), (f), (o), (t), (v), (w), (x), (y), (z),
     (dd) and (ii) to the extent necessary to make the representations and
     warranties relating to such amended Schedules true and correct as of such
     date.

     SECTION 5.04. Operational and Financial Covenants. So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower:

          (a) Revenue. Shall not permit its Revenue for the period beginning on
     the first day of the Borrower's fiscal year in which a date set forth below
     occurs and ending on such date to be less than the amount corresponding to
     such date under the heading "Revenue" set forth below:

<TABLE>
<CAPTION>
                    ----------------------------------------
                       Date                      Revenue
                    ----------------------------------------
<S>                                            <C>
                    12/31/1999                 $    650,000
                    ----------------------------------------
                    03/31/2000                 $    305,000
                    ----------------------------------------
                    06/30/2000                 $    917,000
                    ----------------------------------------
                    09/30/2000                 $  3,050,000
                    ----------------------------------------
                    12/31/2000                 $  6,100,000
                    ----------------------------------------
                    03/31/2001                 $  3,350,000
                    ----------------------------------------
                    06/30/2001                 $  7,000,000
                    ----------------------------------------
                    09/30/2001                 $ 15,800,000
                    ----------------------------------------
                    12/31/2001                 $ 28,000,000
                    ----------------------------------------
                    03/31/2002                 $ 17,000,000
                    ----------------------------------------
                    06/30/2002                 $ 41,500,000
                    ----------------------------------------
                    09/30/2002                 $ 74,000,000
                    ----------------------------------------
                    12/31/2002                 $122,000,000
                    ----------------------------------------
                    03/31/2003                 $ 50,000,000
                    ----------------------------------------
                    06/30/2003                 $103,000,000
                    ----------------------------------------
                    09/30/2003                 $165,000,000
                    ----------------------------------------
                    12/31/2003                 $239,000,000
                    ----------------------------------------
                    03/31/2004                 $ 80,800,000
                    ----------------------------------------
                    06/30/2004                 $165,500,000
                    ----------------------------------------
                    09/30/2004                 $265,500,000
                    ----------------------------------------
                    12/31/2004                 $385,000,000
                    ----------------------------------------
                    03/31/2005                 $125,000,000
                    ----------------------------------------
                    06/30/2005                 $255,500,000
                    ----------------------------------------
</TABLE>
<PAGE>

                                       76

<TABLE>
<S>                                            <C>
                    09/30/2005                 $397,500,000
                    ----------------------------------------
                    12/31/2005                 $567,500,000
                    ----------------------------------------
                    03/31/2006                 $179,000,000
                    ----------------------------------------
                    06/30/2006                 $366,000,000
                    ----------------------------------------
                    09/30/2006                 $561,500,000
                    ----------------------------------------
                    12/31/2006                 $780,000,000
                    ----------------------------------------
</TABLE>

          (b) Total Voice Grade Equivalents. Shall not permit the total number
     of Voice Grade Equivalents of the Borrower and its Subsidiaries as of any
     date set forth below to be less than the number corresponding to such date
     under the heading "Number" set forth below:

<TABLE>
<CAPTION>
                    Date                           Number
                    ----                           ------
<S>                                              <C>
                    12/31/1999                         736
                    06/30/2000                       1,784
                    12/31/2000                       6,230
                    06/30/2001                      21,968
                    12/31/2001                      42,471
                    06/30/2002                     136,555
                    12/31/2002                     241,199
                    06/30/2003                     356,268
                    12/31/2003                     528,939
                    06/30/2004                     645,959
                    12/31/2004                     855,496
                    06/30/2005                     974,049
                    12/31/2005                   1,240,963
                    06/30/2006                   1,364,914
                    12/31/2006                   1,652,157
</TABLE>

          (c) EBITDA. Shall not permit EBITDA for the four fiscal quarters of
     the Borrower immediately preceding any date set forth below to be less than
     the amount set forth under the heading "Amount" corresponding to such date:

<TABLE>
<CAPTION>
                      Date                        Amount
                      ----                        ------
<S>                                           <C>
                    12/31/1999                $ (33,400,000)
                    06/30/2000                $ (48,500,000)
                    12/31/2000                $ (50,500,000)
                    06/30/2001                $ (50,500,000)
</TABLE>
<PAGE>

                                       77

<TABLE>
<CAPTION>
                      Date                        Amount
                      ----                        ------
<S>                                           <C>
                    12/31/2001                $ (43,600,000)
                    06/30/2002                $ (19,800,000)
                    12/31/2002                $  16,500,000
                    06/30/2003                $  45,300,000
                    12/31/2003                $  82,500,000
                    06/30/2004                $ 108,500,000
                    12/31/2004                $ 169,000,000
                    06/30/2005                $ 199,000,000
                    12/31/2005                $ 269,900,000
                    06/30/2006                $ 305,500,000
                    12/31/2006                $ 389,000,000
</TABLE>

          (d) Total Debt to Contributed Capital. Shall not permit the ratio of
     (i) Total Debt outstanding as of any date of determination to (ii)
     Contributed Capital as of such date of determination to be greater than the
     ratio corresponding to the date set forth below on or at any time during
     the 12 months immediately preceding such date:

<TABLE>
<CAPTION>
                      Date                            Ratio
                      ----                            -----
<S>                                                   <C>
                    12/31/1999                        4.50x
                    12/31/2000                        4.50x
                    12/31/2001                        4.50x
                    12/31/2002                        4.50x
                    12/31/2003                        4.00x
                    12/31/2004                        3.50x
                    12/31/2005                        3.00x
                    12/31/2006                        2.50x
</TABLE>

          (e) Total Secured Debt to Contributed Capital. Shall not permit the
     ratio of (i) Total Debt owed by the Borrower secured by Shared Liens
     outstanding as of any date of determination to (ii) Contributed Capital as
     of such date of determination to be greater than the ratio corresponding to
     the date set forth below on or immediately preceding such date:

<TABLE>
<CAPTION>
                      Date                            Ratio
                      ----                            -----
<S>                                                   <C>
                    12/31/1999                        2.00x
                    06/30/2000                        2.00x
                    12/31/2000                        2.00x
</TABLE>
<PAGE>

                                       78

<TABLE>
<CAPTION>
                      Date                            Ratio
                      ----                            -----
<S>                                                   <C>
                    06/30/2001                        2.75x
                    12/31/2001                        2.75x
                    06/30/2002                        2.75x
                    12/31/2002                        2.75x
                    06/30/2003                        2.70x
                    12/31/2003                        2.70x
                    06/30/2004                        2.30x
                    12/31/2004                        2.30x
                    06/30/2005                        2.00x
                    12/31/2005                        2.00x
                    06/30/2006                        1.95x
                    12/31/2006                        1.95x
</TABLE>

          (f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
     permit the ratio of (i) Total Debt owed by the Borrower secured by Shared
     Liens outstanding at of any date of determination to (ii) EBITDA for the
     four consecutive fiscal quarters of the Borrower most recently ended on or
     prior to such date of determination to exceed the ratio corresponding to
     the date set forth below on or immediately proceeding such date of
     determination:

<TABLE>
<CAPTION>
                       Date                          Ratio
                       ----                          -----
<S>                                                  <C>
                    12/31/2002                       16.00x
                    06/30/2003                        4.40x
                    12/31/2003                        3.39x
                    06/30/2004                        2.30x
                    12/31/2004                        1.30x
                    06/30/2005                        0.80x
                    12/31/2005                        0.40x
                    06/30/2006                        0.30x
                    12/31/2006                        0.20x
</TABLE>

          (g) EBITDA to Total Cash Debt Service (Debt service coverage ratio).
     Permit the ratio of (i) EBITDA for the four consecutive fiscal quarters
     ending on any of the dates set forth below to (ii) Total Cash Debt Service
     for the same period to be less than the ratio set forth below opposite such
     date:
<PAGE>

                                       79

<TABLE>
<CAPTION>
                       Date                           Ratio
                       ----                           -----
<S>                                                   <C>
                    12/31/2002                        0.44x
                    06/30/2003                        0.58x
                    12/31/2003                        0.85x
                    06/30/2004                        1.05x
                    12/31/2004                        1.40x
                    06/30/2005                        1.50x
                    12/31/2005                        2.00x
                    06/30/2006                        3.00x
                    12/31/2006                        5.50x
</TABLE>

                                   ARTICLE VI

                                EVENTS OF DEFAULT

     SECTION 6.01. Events of Default. If any of the following events ("Events of
Default") shall occur and be continuing:

          (a) the Borrower shall fail to pay any principal of any Advance when
     the same becomes due and payable or the Borrower shall fail to pay any
     interest on any Advance or make any other payment of fees or other amounts
     payable under this Agreement or any Note within three days after the same
     becomes due and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) in connection with any Loan Document shall prove to have been
     incorrect in any material respect when made; provided that, if such
     inaccuracy is capable of remedy and is in respect of any representation and
     warranty other than those contained in Sections 4.01(a), (b), (c), (d),
     (g), (h), (i), (j), (k), (n) and (y), such inaccuracy shall continue
     unremedied for a period of 10 days; or

          (c) either:

               (i) the Borrower shall fail to perform or observe any term,
          covenant or agreement contained in Section 2.13, 5.01(e), (f), (k) or
          (n), 5.02 or 5.04, or

               (ii) the Borrower shall fail to perform or observe any other
          covenant in this Agreement or any Loan Party shall fail to perform or
          observe any other covenant to be performed or observed by it in any
          other Loan Document, and in any case such failure shall continue
          unremedied for a period of 30 days; or
<PAGE>

                                       80

          (d) any Security Agreement, once executed and delivered, shall cease
     to provide to the Collateral Agent and the Lenders, with the Liens,
     priority, security interests, rights, titles, interests, remedies, powers
     and privileges intended to be created thereby; or

          (e) any of the following shall occur:

               (i) any License or portion thereof shall become invalid or
          unenforceable or shall terminate or not be renewed and, with respect
          to any such portion, such occurrence is reasonably likely to have a
          material adverse effect on the ability of the Borrower to perform its
          payment obligations under the Loan Documents;

               (ii) any rights of the Borrower or any of its Subsidiaries
          thereunder shall be changed and such change is reasonably likely to
          have a material adverse effect on the ability of the Borrower to
          perform its payment obligations under the Loan Documents;

               (iii) any proceeding shall be commenced with the intention of
          revoking the Licenses or a portion thereof that (A) has a reasonable
          likelihood of succeeding and could reasonably be expected to prevent
          the Borrower from operating a material portion of its Network or does
          succeed in revoking all of the Licenses or (B) could reasonably be
          expected to result in or which actually results in, a material adverse
          effect on the ability of the Borrower to perform its payment
          obligations under the Loan Documents; or

               (iv) any Core Territory shall impose any obligation on the
          Borrower or any of its Subsidiaries in respect of any License that is
          reasonably likely to have a material adverse effect on the ability of
          the Borrower to perform its payment obligations under the Loan
          Documents; or

          (f) either:

               (i) the Borrower or any of its Subsidiaries shall fail to pay (A)
          any principal of or premium or interest on or any other amount payable
          in respect of any Debt or (B) any principal of any Subordinated Debt
          or Intercompany Mirror Subordinated Debt, in each case that is
          outstanding in a principal or notional amount of at least $5,000,000
          in the aggregate (but excluding Debt outstanding hereunder) of the
          Borrower or such Subsidiary (as the case may be), when the same
          becomes due and payable (whether by scheduled maturity, required
          prepayment, acceleration, demand or otherwise), and such failure shall
          continue
<PAGE>

                                       81

          after the applicable grace period, if any, specified in the agreement
          or instrument relating to such Debt; or any other event shall occur or
          condition shall exist under any agreement or instrument relating to
          any such Debt and shall continue after the applicable grace period, if
          any, specified in such agreement or instrument, if the effect of such
          event or condition is to accelerate, or to permit the acceleration of,
          the maturity of such Debt; or any such Debt shall be declared to be
          due and payable, or required to be prepaid or redeemed (other than by
          a regularly scheduled required prepayment or redemption), purchased or
          defeased, or an offer to prepay, redeem, purchase or defease such Debt
          shall be required to be made, in each case prior to the stated
          maturity thereof; or

               (ii) the Parent shall fail to pay any principal of or premium or
          interest on or any other amount payable in respect of any Debt that is
          outstanding in a principal or notional amount of at least $5,000,000
          in the aggregate, when the same becomes due and payable (whether by
          scheduled maturity, required prepayment, acceleration, demand or
          otherwise), and such failure shall continue after the applicable grace
          period, if any, specified in the agreement or instrument relating to
          such Debt; or any other event shall occur or condition shall exist
          under any agreement or instrument relating to any such Debt and shall
          continue after the applicable grace period, if any, specified in such
          agreement or instrument, if the effect of such event or condition is
          to accelerate the maturity of such Debt; or any such Debt shall be
          declared to be due and payable, or required to be prepaid or redeemed
          (other than by a regularly scheduled required prepayment or
          redemption), purchased or defeased, or an offer to prepay, redeem,
          purchase or defease such Debt shall be required to be made, in each
          case prior to the stated maturity thereof; or

          (g) the Parent or any Loan Party shall generally not pay its debts as
     such debts become due, or shall admit in writing its inability to pay its
     debts generally, or shall make a general assignment for the benefit of
     creditors; or any proceeding shall be instituted by or against the Parent,
     any Loan Party or any of its Subsidiaries seeking to adjudicate it as
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     concordato, arrangement, adjustment, protection, relief, or composition of
     it or its debts under any law relating to bankruptcy, insolvency,
     reorganization or concordato or relief of debtors, or seeking the entry of
     an order for relief or the appointment of a receiver, trustee, custodian or
     other similar official for it or for any substantial part of its property
     and, in the case of any such proceeding instituted against it (but not
     instituted by it) that is being diligently contested by it in good faith,
     either such proceeding shall remain undismissed, unvacated or unstayed for
     a period of 60 days, or any of the actions sought in such proceeding
     (including without limitation the entry of an order for relief against, or
     the appointment of a receiver, trustee, custodian or other similar official
     for, it or for any substantial part of its property) shall occur; or the
     Parent, any Loan Party or any of its Subsidiaries shall
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                                       82

     take any corporate action to authorize any of the actions set forth above
     in this subsection (g); or

          (h) any judgment or order for the payment of money in excess of
     $5,000,000 shall be rendered against the Parent, the Borrower or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 60 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

          (i) any non-monetary judgment or order shall be rendered against the
     Borrower or any of its Subsidiaries that could be reasonably expected to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (j) the Borrower or any of its ERISA Affiliates shall incur, or in the
     reasonable opinion of the Required Lenders shall be reasonably likely to
     incur liability in excess of $1,000,000 in the aggregate as a result of one
     or more of the following: (i) the occurrence of any ERISA Event; (ii) the
     partial or complete withdrawal of the Borrower or any of its ERISA
     Affiliates from a Multiemployer Plan; or (iii) the reorganization or
     termination of a Multiemployer Plan; or

          (k) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it, or any such Loan Party
     shall so state in writing; or

          (l) any material provisions of this Agreement or any other Loan
     Document shall be or become invalid or unenforceable against the Loan
     Parties that are parties thereto, or any Loan Party shall so assert; or

          (m) a Change of Control shall occur; or the Borrower shall at any time
     for any reason cease to be the record and beneficial owner of all of the
     outstanding Equity Interests in its Subsidiaries other than any Equity
     Interests held by other Persons as of the date hereof; or
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                                       83

          (n) any Core Territory shall declare a moratorium on the payment of
     external debt or impose any restrictions on access to foreign exchange or
     transfer of funds, in any case, and such declaration or imposition is
     reasonably likely to have a Material Adverse Effect; or

          (o) there shall occur any condemnation, taking or expropriation of any
     assets of the Borrower or any of its Subsidiaries that is reasonably likely
     to result in a Material Adverse Effect; or

          (p) in the view of the Lenders, a Material Adverse Change shall occur;
     or

          (q) any default on the part of the Borrower or any of its Subsidiaries
     to comply with its obligations under Section 12.2 of the Supply Agreement
     or any payment obligations set forth in any other agreements entered into
     by the Borrower or any of its Subsidiaries with the Vendor or its
     Affiliates; or

          (r) the Parent or any of its direct or indirect Subsidiaries (other
     than the Borrower and the other Loan Parties) shall engage to any material
     extent in the business of providing data, voice or video services or any
     business that competes with the business conducted by the Borrower and the
     other Loan Parties, in each case, in any Core Territory;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Supermajority Lenders, by written notice to the
Borrower, declare the obligation of each Lender to make Advances to be
terminated, whereupon the same shall forthwith terminate, (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the Notes, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Notes, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower, and (iii) shall at the
request, or may with the consent, of the Required Lenders, foreclose on any and
all of the Collateral in accordance with the terms of the relevant Security
Agreements; provided that upon the occurrence of an Event of Default under
clause 6.01(g) above, (A) the obligation of each Lender to make Advances shall
automatically be terminated and (B) the Notes, all such interest and all such
amounts shall automatically become and be due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrower.
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                                       84

                                   ARTICLE VII

                            THE ADMINISTRATIVE AGENT

     SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers and discretion under this Agreement as are delegated
to the Administrative Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto. As to any matters not expressly
provided for by this Agreement (including without limitation enforcement or
collection of the Notes), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided that the Administrative Agent shall not be required to take any action
that exposes the Administrative Agent to personal liability or that is contrary
to this Agreement or applicable law. The Administrative Agent agrees to give to
each Lender prompt notice of each notice given to it by the Borrower pursuant to
the terms of this Agreement.

     SECTION 7.02. Agent's Reliance, Etc. Neither the Administrative Agent nor
any of its respective directors, officers, agents or employees shall be liable
for any action taken or omitted to be taken by it or them under or in connection
with this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent: (i) may treat the payee of any Note as the holder thereof
until the Administrative Agent receives and accepts an Assignment and Acceptance
entered into by the Lender that is the payee of such Note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or to inspect the
property (including the books and records) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

     SECTION 7.03. Agent and Affiliates. With respect to its Commitment, the
Advances made by it and the Note issued to it, if any, the Person serving as the
Administrative Agent hereunder shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not
the Administrative Agent; and the term
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                                       85

"Lender" or "Lenders" shall, unless otherwise expressly indicated, include the
Administrative Agent in its individual capacity. Any Person serving as
Administrative Agent and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if the Person serving as Administrative
Agent were not the Administrative Agent and without any duty to account therefor
to the Lenders.

     SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

     SECTION 7.05. Indemnification. The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed by the Borrower), ratably
according to the respective principal amounts of the Notes then held by each of
the Lenders (or if no Notes are at the time outstanding or if the Notes are held
by Persons that are not Lenders, ratably according to the respective amounts of
their Commitments), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Administrative Agent, in any way relating to or
arising out of this Agreement or any action taken or omitted by the
Administrative Agent under this Agreement (collectively, the "Indemnified
Costs"); provided that no Lender shall be liable for any portion of the
Indemnified Costs resulting from the gross negligence or willful misconduct of
the Administrative Agent. Without limitation of the foregoing, each Lender
agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred by
it in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, to the extent that such agent is not
reimbursed for such expenses by the Borrower. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05
applies whether any such investigation, litigation or proceeding is brought by
the Administrative Agent, any Lender or a third party.

     SECTION 7.06. Successor Agent. The Administrative Agent may resign at any
time by giving written notice thereof to the Lenders and the Borrower and may be
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Administrative Agent. If no
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                                       86

successor Administrative Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after such
retiring agent's giving of notice of resignation or the Required Lenders'
removal of such retiring agent, then such retiring agent may, on behalf of the
Lenders, appoint a successor Administrative Agent, which shall be a commercial
bank organized or licensed to do business under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $1,000,000,000. Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Administrative
Agent and the retiring Administrative Agent shall be discharged from its duties
and obligations under this Agreement. After any such retiring agent's
resignation or removal hereunder as Administrative Agent, the provisions of this
Article VII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided that

          (a) no amendment, waiver or consent shall, unless in writing and
     signed by all of the Lenders (other than any Lender Party that is, at such
     time, a Defaulting Lender), do any of the following at any time:

               (i) waive any of the conditions specified in Section 3.01 or, in
          the case of the initial Advance, Section 3.02,

               (ii) change the number of Lenders or the percentage of (A) the
          Commitments, or (B) the aggregate unpaid principal amount of the
          Advances that, in each case, shall be required for the Lenders or any
          of them to take any action hereunder,

               (iii) reduce or limit the obligations of any Guarantor under
          Section 1.0 of its Guaranty or otherwise limit any Guarantor's
          liability with respect to the Obligations owing to any Agent and the
          Lenders,
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                                       87

               (iv) release any Collateral in any transaction or series of
          related transactions or permit the creation, incurrence, assumption or
          existence of any Lien on any item of Collateral in any transaction or
          series of related transactions to secure any Obligations other than
          Obligations owing to the Secured Creditors under the Loan Documents,

               (v) amend this Section 8.01,

               (vi) increase the Commitments of the Lenders or subject the
          Lenders to any additional obligations,

               (vii) reduce the principal of, or interest on, the Advances or
          any fees or other amounts payable hereunder,

               (viii) postpone any date fixed for any payment of principal of,
          or interest on, the Borrowings or any fees or other amounts payable,
          or

               (ix) limit the liability of any Loan Party under any of the Loan
          Documents, and

          (b) no amendment, waiver or consent shall, unless in writing and
     signed by an Agent in addition to the Lenders required above to take such
     action, affect the rights or (in the case of the Administrative Agent)
     duties of such Agent under this Agreement.

     SECTION 8.02. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and mailed, telecopied, telegraphed, telexed or delivered, if to
the Borrower, at its address at Diginet Americas, Inc.,3201 New Mexico Ave. NW,
Suite 320, Washington, D.C. 20016, Attention: Laurence A. Hinz; if to the
Initial Lender, at its Lending Office specified opposite its name on the
signature pages hereto; if to any other Lender, at its Lending Office specified
in the Assignment and Acceptance pursuant to which it became a Lender; and if to
the Administrative Agent, at its address at Ericsson Credit AB, Telefonvagen 30,
SE 126 25, Stockholm, Sweden, Attention: Erik Ramstrom, Re: Diginet; or, as to
the Borrower or the Administrative Agent, at such other address as shall be
designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Administrative Agent. All such notices
and communications shall, when hand delivered, telecopied, telegraphed or
telexed, be effective when hand delivered, telecopied, delivered to the
telegraph company or confirmed by telex answerback, respectively, and when sent
by regular mail, postage prepaid, return receipt requested shall be effective 5
days after the date of its deposit in the mails, except that notices and
communications to the Administrative Agent pursuant to Article II, III or VII
shall not be effective until received by the Administrative Agent. Delivery by
telecopier of an executed counterpart of any amendment or
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                                       88

waiver of any provision of this Agreement or the Notes or of any Exhibit to be
executed and delivered hereunder shall be effective as delivery of a manually
executed counterpart thereof.

     SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender,
the Administrative Agent or the Collateral Agent to exercise, and no delay in
exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

     SECTION 8.04. Costs and Expenses; Indemnification. (a) The Borrower will
pay on demand

          (i) all costs and expenses of the Administrative Agent and the Lenders
     in connection with the preparation, execution, delivery, administration,
     modification and amendment of the Loan Documents (including, without
     limitation, (A) all due diligence, collateral review, syndication,
     transportation, computer, duplication, appraisal, audit, insurance,
     consultant, search, filing and recording fees and expenses, (B) the
     reasonable fees and expenses of a single counsel for the Agents in each
     relevant jurisdiction with respect thereto, and (C) the reasonable fees and
     expenses of a single counsel for the Agents in each relevant jurisdiction
     with respect to advising the Agents as to their respective rights and
     responsibilities, or the perfection, protection or preservation of rights
     or interests, under the Loan Documents, with respect to negotiations with
     any Loan Party or with other creditors of any Loan Party or any of its
     Subsidiaries arising out of any Default or any events or circumstances that
     may give rise to a Default and with respect to presenting claims in or
     otherwise participating in or monitoring any bankruptcy, insolvency or
     other similar proceeding involving creditors' rights generally and any
     proceeding ancillary thereto), and

          (ii) all costs and expenses of the Administrative Agent and the Lender
     Parties in connection with the enforcement of the Loan Documents, whether
     in any action, suit or litigation, any bankruptcy, insolvency or other
     similar proceeding affecting creditors' rights generally (including,
     without limitation, the reasonable fees and expenses of a single counsel
     for the Administrative Agent and each Lender Party in each relevant
     jurisdiction with respect thereto).

     (b) The Borrower will indemnify and hold harmless the Administrative Agent
and each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including without
limitation reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising in any
way out of or in connection with or by reason of (i) the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances, except to the extent such claim, damage, loss,
liability or expense resulted from such
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                                       89

Indemnified Party's gross negligence or willful misconduct. In the case of an
investigation, litigation or other proceeding to which the indemnity in this
Section 8.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person
or any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. The Borrower also agrees not
to assert any claim against the Agent, any Lender, any of their Affiliates, or
any of their respective directors, officers, employees, attorneys and agents, on
any theory of liability, for special, indirect, consequential or punitive
damages arising out of or otherwise relating to the Notes, this Agreement, any
of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.

     (c) If any payment of principal of any Advance is made by the Borrower to
or for the account of a Lender other than on the last day of the Interest Period
for such Advance, as a result of a payment pursuant to Section 2.09(c) and (d),
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, the Borrower shall, upon written demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender any amounts reasonably required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment, including without limitation any
loss, cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Lender to fund or maintain such Advance.
The loss to any Lender attributable to any such event shall be deemed to be an
amount determined by such Lender to be equal to the excess, if any, of (i) the
amount of interest that such Lender would pay for a deposit equal to the
principal amount of the applicable Eurodollar Rate Advance so prepaid or
accelerated, as applicable, for the period from the date of such payment or
acceleration to the last day of the then current Interest Period for such
Eurodollar Rate Advance if the interest rate payable on such deposit were equal
to the Eurodollar Rate for such Interest Period, over (ii) the amount of
interest that such Lender would earn on such principal amount for such period if
such Lender were to invest such principal amount for such period at the interest
rate that would be bid by such Lender (or an Affiliate of such Lender) for
dollar deposits from other banks in the eurodollar market at the commencement of
such period. A certificate as to the amount of such loss, cost or expense,
submitted to the Borrower by such Lender, shall be conclusive and binding for
all purposes, absent manifest error.

     (d) If any Loan Party fails to pay when due any costs, expenses or other
amounts payable by it under any Loan Document, including, without limitation,
fees and expenses of counsel and indemnities, such amount may be paid on behalf
of such Loan Party by the Agents or any Lender Party, in its sole discretion.

     (e) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.09, 2.11 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.
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                                       90

     SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender or such Affiliate to or for the credit or the account
of the Borrower against any and all of the obligations of the Borrower now or
hereafter existing under this Agreement and the Note held by such Lender,
whether or not such Lender shall have made any demand under this Agreement or
such Note and although such obligations may be unmatured. Each Lender agrees
promptly to notify the Borrower in writing after any such set-off and
application; provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its
Affiliates under this Section 8.05 are in addition to other rights and remedies
(including without limitation other rights of set-off) that such Lender and its
Affiliates may have.

     SECTION 8.06. Binding Effect. The amendment and restatement of the Original
Credit Agreement, as set forth in this Agreement, shall become effective when
(i) this Agreement shall have been executed by the Borrower, the Administrative
Agent and the Initial Lender and (ii) the conditions set forth in Section 3.03
shall have been fulfilled and thereafter this Agreement shall be binding upon
and inure to the benefit of the Borrower, the Administrative Agent and each
Lender and their respective successors and assigns, except that the Borrower
shall not have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lenders.

     SECTION 8.07. Assignments and Participations. (a) Each Lender may assign to
an Eligible Assignee all or a portion of its rights and obligations under this
Agreement (including without limitation all or a portion of its Commitment, the
Advances owing to it and the Note or Notes held by it and either outstanding
Advances or Commitments); provided that (i) except in the case of an assignment
to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender's rights and obligations under this Agreement, the
amount of the Advances and unfunded Commitment of the assigning Lender being
assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $5,000,000 and (ii) the parties to each such assignment shall execute
and deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note subject to such
assignment and a processing and recordation fee of $3,500. Notwithstanding the
foregoing, nothing in this Section shall be construed to prohibit the assignment
of a proportionate part of all of the assigning Lender's rights and obligations
in respect of (A) Advances separately from (or without assigning) Commitments,
(B) Commitments separately from (or without assigning) Advances, (C) Tranche A
Commitments or Tranche A Advances separately from (or without assigning) Tranche
B Commitments or Tranche B Advances or (D) Tranche B Commitments or Tranche B
Advances separately from (or without assigning) Tranche A Commitments or Tranche
A Advances. Upon such execution, delivery, acceptance and recording, from and
after the
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                                       91

effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender's rights and obligations under this Agreement,
such Lender shall upon such assignment cease to be a party hereto).

     (b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement and the Intercreditor
Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, such assigning Lender or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such assignee confirms that it is an Eligible
Assignee; (vi) such assignee appoints and authorizes the Administrative Agent
and the Collateral Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to the
Administrative Agent and the Collateral Agent by the terms hereof, together with
such powers and discretion as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement and the Intercreditor Agreement
are required to be performed by it as a Lender.

     (c) The Administrative Agent shall maintain at its address referred to in
Section 8.02 a copy of each Assignment and Acceptance delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Advances owing to,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent, the Collateral Agent and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes
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                                       92

of this Agreement. The Register shall be available for inspection by the
Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

     (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and (iii) give
prompt written notice thereof to the Borrower. Within five Business Days after
its receipt of such notice and at the request of such assignee Lender, the
Borrower, at its own expense, shall execute and deliver to the Administrative
Agent in exchange for any surrendered Note a new Note to the order of such
Assignee in an amount equal to the Commitment assumed by it pursuant to such
Assignment and Acceptance and, if the assigning Lender has retained a Commitment
hereunder, a new Note to the order of the assigning Lender in an amount equal to
the Commitment retained by it hereunder. Such new Note or Notes shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Note or Notes, shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of Exhibit A.

     (e) Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including without
limitation all or a portion of its Commitment, the Advances owing to it and the
Note or Notes held by it); provided that (i) such Lender's obligations under
this Agreement (including without limitation its Commitment to the Borrower
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Note for all purposes of
this Agreement, (iv) the Borrower, the Administrative Agent, the Collateral
Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement and (v) no participant under any such participation shall have any
right to approve any amendment or waiver of any provision of this Agreement or
any Note, or any consent to any departure by the Borrower therefrom, except to
the extent that such amendment, waiver or consent would reduce the principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation, postpone any date fixed
for any payment of principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, or to the extent that any such amendment or consent provides for
a release of the Borrower's obligations under the Security Agreements or any
Subsidiary's obligations under any Guaranty.

     (f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree in writing to
<PAGE>

                                       93

preserve the confidentiality of any Confidential Information relating to the
Borrower received by it from such Lender.

     (g) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including without limitation the Advances owing to
it and the Note held by it) in favor of any Federal Reserve Bank in accordance
with Regulation A of the Board of Governors of the Federal Reserve System.

     SECTION 8.08. Confidentiality. Neither the Administrative Agent nor any
Lender shall disclose any Confidential Information to any other Person without
the consent of the Borrower, other than (a) to the Administrative Agent's, the
Collateral Agent or such Lender's Affiliates and their officers, directors,
employees, agents and advisors and, as contemplated by Section 8.07(f), to
actual or prospective assignees and participants, and then only on a
confidential basis, (b) to any party to the Intercreditor Agreement, (c) as
required by any law, rule or regulation or judicial process and (d) as requested
or required by any state, federal or foreign authority or examiner regulating
banks or banking.

     SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York.

     SECTION 8.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.

     SECTION 8.11. Jurisdiction, Judgment Currency, Etc. (a) Each of the parties
hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
federal court of the United States of America sitting in New York City in the
Borough of Manhattan, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the Notes, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or the Notes in the courts of any
jurisdiction.

     (b) Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have
<PAGE>

                                       94

to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or the Notes in any New York State or federal court.
Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

     (c) (i) If, for the purpose of obtaining judgment in any court, it is
necessary to convert a sum due hereunder to any party hereunder in one currency
into another currency, the parties hereto agree, to the fullest extent permitted
by law, that the rate of exchange used shall be that at which in accordance with
its normal banking procedures such party could purchase the first currency with
such other currency on the day which is at least two Business Days prior to the
day on which final judgment is rendered.

     (ii) To the fullest extent permitted by law, the obligation of any party in
respect of any sum payable hereunder by it to any other party hereunder shall,
notwithstanding any judgment in a currency (the "Judgment Currency") other than
Dollars (the "Agreement Currency"), be discharged only to the extent that on the
Business Day following receipt by such other party of any sum adjudged to be so
due in the Judgment Currency such other party may in accordance with normal
banking procedures purchase the Agreement Currency with the Judgment Currency;
if the amount of the Agreement Currency which could have been so purchased is
less than the sum originally due to such other party in the Agreement Currency,
such first party agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such other party against such loss, and, if the amount of
the Agreement Currency which could have been so purchased exceeds the sum
originally due to such other party, such other party agrees to remit to such
first party such excess; provided that neither any Lender nor the Administrative
Agent shall have any obligation to remit any such excess as long as the Borrower
shall have failed to pay any Lender or the Administrative Agent, as the case may
be, any obligations due and payable under this Agreement, in which case such
excess may be applied to such obligations of the Borrower hereunder in
accordance with the terms of this Agreement.

     SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the
Administrative Agent and the Lenders hereby irrevocably waive, to the extent
permitted by law, all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement or the Notes or the actions of any Agent or any
Lender in the negotiation, administration, performance or enforcement thereof.

     SECTION 8.13. Intercreditor Arrangements. Each of the Lenders and the
Borrower acknowledge that the Lenders hereunder, together with any Other Secured
Creditors, shall be considered to be joint creditors (credores solidarios) with
respect to the Obligations under the Loan Documents and the obligations owed to
such Other Secured Creditors; provided that if requested by the Borrower, any
Other Secured Creditors or potential Other Secured Creditors, the Lenders and
the Agents agree to negotiate in good faith with a view to agreeing to a
substitute structure governing the equal sharing of Collateral under Brazilian
law and to documentation reflecting such structure.
<PAGE>

                                       95

     SECTION 8.14. Intercreditor Agreement; Amendments to Lucent Credit
Agreement. Except with the consent of the Borrower, the Lenders shall not amend
or modify Section 4.1(a) of the Intercreditor Agreement in a manner that would
add to the limitations set forth therein on the ability of the lenders party to
any Permitted Loan Agreement (as defined in the Intercreditor Agreement) to
agree to amendments to or modifications of such Permitted Loan Agreement. The
Borrower shall not enter into any amendment to or modification of the Lucent
Credit Agreement unless it shall at the same time have offered to enter into an
amendment to or modification of this Agreement on substantially the same terms.
<PAGE>

                                       96

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        DIVEO, INC.

                                        By
                                           -------------------------------------
                                           Title:

                                        ERICSSON CREDIT AB, as Administrative
                                        Agent and Initial Lender

                                        By
                                           -------------------------------------
                                           Title:

Tranche A Commitment:  $187,500,000     ERICSSON CREDIT AB
Tranche B Commitment:  $112,500,000
(plus undrawn Tranche A Commitments
at the Tranche A Termination Date)

Lending Office and Address for Notices:
Ericsson Credit AB
Telefonvagen 30
SE-126 25
Stockholm, Sweden
<PAGE>

                                                                  EXECUTION COPY

                          WAIVER AND AMENDMENT NO. 2
                           TO THE CREDIT AGREEMENTS

                                    Dated as of March 24, 2000

To:  Ericsson Credit AB, as Lender
     under the Ericsson Credit Agreement referred to below

     Lucent Technologies Inc., as Lender
     under the Lucent Credit Agreement referred to below

Ladies and Gentlemen:

          We refer to the Amended and Restated Credit Agreement dated as of
November 24, 1999 (as amended pursuant to Waiver and Amendment No.1 to the
Credit Agreements dated as of January 14, 2000 and as otherwise amended or
modified from time to time, the "Ericsson Credit Agreement"), among Diveo, Inc.
                                 -------------------------
(the "Borrower"), Ericsson Credit AB, as Initial Lender, and Ericsson Credit AB,
      --------
as Administrative Agent ("Ericsson") and to the Credit Agreement dated as of
                          --------
November 22, 1999 (as amended pursuant to Waiver and Amendment No.1 to the
Credit Agreements dated as of January 14, 2000 and as otherwise amended or
modified from time to time, the "Lucent Credit Agreement", and together with the
                                 -----------------------
Ericsson Credit Agreement, the "Credit Agreements"), among Diveo, Inc. (the
                                -----------------
"Borrower"), Lucent Technologies Inc., as Initial Lender, and Lucent
 --------
Technologies Inc., as Administrative Agent ("Lucent").  With respect to each
                                             ------
Credit Agreement, capitalized terms not otherwise defined in this Waiver and
Amendment No. 2 have the same meanings as specified in such Credit Agreement.

1.   We hereby request from Ericsson that the Ericsson Credit Agreement be
amended as follows:

     (a)  The first paragraph of the recitals to the Agreement be deleted in its
          entirety and replaced with the following:

               "The Borrower has been formed in order to plan, construct,
          operate and maintain digital wireless local loop voice and data
          networks and Internet infrastructure for web hosting, collocation and
          other enhanced Internet services (each, a "Network") in the United
                                                     -------
          States of America, Mexico, Central America and South America (the
          "Territory") (the planning, construction, operation and maintenance of
           ---------
          the Networks being the "Project")."
                                  -------

     (b)  The definition of "Blocked Account" be amended by inserting the words
          "owing to the Vendor" before the phrase "under the Supply Agreement".
<PAGE>

     (c)  The definition of "Core Territories" be deleted in its entirety and
          replaced with the following:

               ""Core Territories" means the United States of America,
                 ----------------
          Argentina, Brazil, Colombia, Panama, Peru and Uruguay."

     (d)  The definition of "Tranche B Commitment" be deleted in its entirety
          and replaced with the following:

               ""Tranche B Commitment" means, with respect to any Lender at any
                 --------------------
          time, the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment", as such amount may be reduced from time to
          time pursuant to Section 2.04."

     (e)  The definition of "Tranche B Effective Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Effective Date" means, with respect to the Tranche B
                 ------------------------
          Commitments of the Lenders, January 1, 2001."

     (f)  The definition of "Tranche B Termination Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Termination Date" means the earlier of the eighteen
                 --------------------------
          month anniversary of the Tranche B Effective Date and the date of
          termination in whole of the Tranche B Commitments pursuant to Section
          2.04 or 6.01."

     (g)  Section 2.01 be amended as follows:

          (i)  The second sentence of Section 2.01(a) be deleted in its entirety
               and replaced by the following: "Each Borrowing consisting of
               Tranche A Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the
               16/th/ day of the month preceding the month in which the date of
               the proposed Borrowing falls to the 16/th/ day of the month in
               which the date of the proposed Borrowing falls and (B) that were
               not paid with the proceeds of any prior Borrowing and (ii)
               interest owing on Borrowings to be paid with the proceeds
               thereof."; and

          (ii) The second sentence of Section 2.01(b) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche B Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply
<PAGE>

               Agreement during the period from the 16/th/ day of the month
               preceding the month in which the date of the proposed Borrowing
               falls to the 16/th/ day of the month in which the date of the
               proposed Borrowing falls and (B) that were not paid with the
               proceeds of any prior Borrowing and (ii) interest owing on
               Borrowings to be paid with the proceeds thereof."

     (h)  Section 2.02(a) be amended as follows:

          (i)  Insertion of a new subclause (C):  "whether such Borrowing will
               be a Tranche A Borrowing or a Tranche B Borrowing,"; and the
               renaming of existing subclause (C) as subclause (D); and

          (ii) Insertion of a new subclause (E):  "the third party invoices for
               Ancillary Services (as defined in Annex 6 to the Supply
               Agreement) to be paid with the proceeds of such Borrowing, the
               respective amounts of such invoices to be paid and the aggregate
               amount of such invoices to be paid, and"; and the renaming of
               existing subclause (D) as subclause (F).

     (i)  Section 2.03(b) be amended as follows:

               The word "1.10%" contained in the third to last line of Section
          2.03(b) be deleted and replaced with the word "1.45%".

     (j)  Section 2.05(b) be amended as follows:

               The first sentence be deleted and replaced with the following:
          "The Borrower shall repay to the Administrative Agent for the ratable
          account of the Lenders that have made Tranche B Advances the aggregate
          outstanding principal amount of the Tranche B Advances in nine
          installments (i) the first of which shall be payable on January 1,
          2003 and (ii) otherwise payable on the last day of every sixth
          calendar month after the twenty-four month anniversary of the Tranche
          B Effective Date, each in an amount equal to the product obtained by
          multiplying (a) the unpaid principal amount of such Tranche B Advances
          outstanding on the Tranche B Termination Date by (b) 11.111%; provided
                                                                        --------
          that the last such installment shall be in an amount necessary to
          repay in full the unpaid principal amount of the Tranche B Advances."

     (k)  Section 2.13 be amended as follows:

          (i)  deleting the last sentence in its entirety and replacing it with
               the following:

               "The proceeds of the Advances available to make Back-to-Back
               Loans described in clause (a) of the preceding sentence shall be
               paid directly to the financial institution providing Back-to-Back
               Loans and the proceeds of such Back-to-Back Loans made to
               Operating Subsidiaries in Argentina, Brazil, Peru and Uruguay (in
               the case of Uruguay, subject to applicable
<PAGE>

                law) to be used to pay invoices issued by the Vendor under the
                Supply Agreement shall at all times be held in Blocked Accounts
                until disbursed to pay invoices owing to the Vendor under the
                Supply Agreement."; and

          (ii)  adding after the first paragraph a second paragraph to read as
                follows:

                "Notwithstanding anything in the Supply Agreement to the
                contrary, the Operating Subsidiaries shall use commercially
                reasonable efforts to use the proceeds of the Back-to-Back Loans
                to pay amounts owing under invoices issued or accepted by the
                Vendor pursuant to the Supply Agreement, and as specified in the
                related Notice of Borrowing, no later than the last day of the
                month in which such proceeds were received."

     (l)  Section 5.02(a) be amended as follows:

          (i)   insertion of a new clause (xii) containing the following:

                "Debt in the form of promissory notes issued to the selling
                stockholders in connection with the acquisition of INEA, S.A.,
                in a principal amount not to exceed $2,800,000, and";

          (ii)  the existing clause (xii) of Section 5.02(a) be renamed clause
                (xiii), and the word "(xi)" in the second line of the renamed
                clause (xiii) be deleted and replaced with the word "(xii)"; and

          (iii) clause (vi) be deleted in its entirety and replaced with the
                following:

                "(vi)  Debt incurred in connection with the entering into by the
                Borrower or a Subsidiary thereof of Capitalized Leases in
                aggregate principal amount (including any such Debt incurred to
                refinance such Debt, as permitted by clause (xii) below) at any
                one time outstanding not exceeding (A) $100,000,000, with
                respect to any indefeasible rights of use of fiber and (B)
                $10,000,000, with respect to Capitalized Leases other than
                indefeasible rights of use of fiber,"

     (m)  Section 5.02(o) be deleted in its entirety and replaced with the
          following:

                "(o)   Gross PP&E.  Make or permit its Subsidiaries to make any
                       ----------
                Capital Expenditures that would cause the Gross PP&E of the
                Borrower and its Subsidiaries in any period set forth below to
                exceed the amount set forth below for such period.

<TABLE>
<CAPTION>
                       Year Ending In            Amount
                       --------------            ------
                       <S>                       <C>
                          12/31/99               $  115,000,000
                          12/31/00               $  325,564,000
</TABLE>
<PAGE>

<TABLE>
                       <S>                    <C>
                       12/31/01               $  466,052,000
                       12/31/02               $  587,322,000
                       12/31/03               $  716,357,000
                       12/31/04               $  867,065,000
                       12/31/05               $1,028,336,000
                       12/31/06               $1,204,626,000
</TABLE>
                                                                           "

     (n)  Section 5.02(p) be deleted in its entirety and replaced with the
following:

               "(p) Lease Obligations. Create, incur, assume or suffer to exist,
                    -----------------
                    or permit any of its Subsidiaries to create, incur, assume
                    or suffer to exist

                    (i)  any obligations as lessee for the rental or hire of
                         real or personal property of any kind under leases or
                         agreements to lease having a term of one year or more
                         from the date of execution thereof (other than
                         Capitalized Leases) that would cause the direct and
                         contingent liabilities of it and its Subsidiaries, on a
                         Consolidated basis, in respect of all such obligations
                         in any period set forth below to exceed the amount set
                         forth below for such period;

<TABLE>
<CAPTION>
                    Year Ending In               Amount
                    --------------               ------
                    <S>                        <C>
                       12/31/99                $ 7,500,000
                       12/31/00                $12,723,000
                       12/31/01                $18,283,000
                       12/31/02                $31,472,000
                       12/31/03                $42,835,000
                       12/31/04                $55,702,000
                       12/31/05                $69,685,000
                       12/31/06                $86,153,000
</TABLE>

                    or

                    (ii) any obligations under Capitalized Leases that would
                    cause the direct and contingent liabilities of it and its
                    Subsidiaries, on a Consolidated basis, in respect of all
                    such obligations to exceed at any time (A) $100,000,000,
                    with respect to indefeasible rights of use of fiber and (B)
                    $10,000,000, with respect to Capitalized Leases other than
                    indefeasible rights of use of fiber."
<PAGE>

     (o)  Section 5.04(a) be deleted in its entirety and replaced with the
following:

               "(a) Revenue.  Shall not permit its Revenue for the
                    -------
               period beginning on the first day of the Borrower's fiscal year
               in which a date set forth below occurs and ending on such date to
               be less than the amount corresponding to such date under the
               heading "Revenue" set forth below:

<TABLE>
<CAPTION>
                    Date                      Revenue
                                              -------
             ----------------------------------------------------
             <S>                              <C>
                 12/31/1999                    $      650,000
             ----------------------------------------------------
                 03/31/2000                    $      519,000
             ----------------------------------------------------
                 06/30/2000                    $    1,530,000
             ----------------------------------------------------
                 09/30/2000                    $    3,165,000
             ----------------------------------------------------
                 12/31/2000                    $    6,501,000
             ----------------------------------------------------
                 03/31/2001                    $    4,739,000
             ----------------------------------------------------
                 06/30/2001                    $   11,659,000
             ----------------------------------------------------
                 09/30/2001                    $   21,275,000
             ----------------------------------------------------
                 12/31/2001                    $   34,331,000
             ----------------------------------------------------
                 03/31/2002                    $   21,066,000
             ----------------------------------------------------
                 06/30/2002                    $   52,052,000
             ----------------------------------------------------
                 09/30/2002                    $   96,045,000
             ----------------------------------------------------
                 12/31/2002                    $  157,550,000
             ----------------------------------------------------
                 03/31/2003                    $   69,264,000
             ----------------------------------------------------
                 06/30/2003                    $  155,844,000
             ----------------------------------------------------
                 09/30/2003                    $  249,350,000
             ----------------------------------------------------
                 12/31/2003                    $  346,319,000
             ----------------------------------------------------
                 03/31/2004                    $  117,257,000
             ----------------------------------------------------
                 06/30/2004                    $  263,828,000
             ----------------------------------------------------
                 09/30/2004                    $  422,124,000
             ----------------------------------------------------
                 12/31/2004                    $  586,283,000
             ----------------------------------------------------
                 03/31/2005                    $  177,795,000
             ----------------------------------------------------
                 06/30/2005                    $  389,456,000
             ----------------------------------------------------
                 09/30/2005                    $  618,049,000
             ----------------------------------------------------
                 12/31/2005                    $  846,643,000
             ----------------------------------------------------
                 03/31/2006                    $  239,958,000
             ----------------------------------------------------
                 06/30/2006                    $  512,637,000
             ----------------------------------------------------
                 09/30/2006                    $  796,223,000
             ----------------------------------------------------
                 12/31/2006                    $1,090,717,000
             ----------------------------------------------------
</TABLE>
                                                                      "

     (p)  Section 5.04(b) be deleted in its entirety and replaced with the
following:

               "(b) Total Voice Grade Equivalents. Shall not permit the total
                    -----------------------------
             number of Voice Grade Equivalents of the Borrower and its
             Subsidiaries as of any
<PAGE>

          date set forth below to be less than the number corresponding to such
          date under the heading "Number" set forth below:

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
               <S>                    <C>
               12/31/1999                   736
               06/30/2000                 3,071
               12/31/2000                 9,040
               06/30/2001                22,999
               12/31/2001                50,859
               06/30/2002               154,612
               12/31/2002               251,548
               06/30/2003               398,177
               12/31/2003               544,806
               06/30/2004               723,723
               12/31/2004               902,639
               06/30/2005             1,074,614
               12/31/2005             1,246,590
               06/30/2006             1,428,556
               12/31/2006             1,610,522
</TABLE>
                                                  "

     (q)  Section 5.04(c) be deleted in its entirety and replaced with the
following:

               "(c) EBITDA. Shall not permit EBITDA for the four fiscal quarters
                    ------
               of the Borrower immediately preceding any date set forth below to
               be less than the amount set forth under the heading "Amount"
               corresponding to such date:

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
                <S>                   <C>
                12/31/1999            $ (33,400,000)
                06/30/2000            $ (65,781,000)
                12/31/2000            $ (99,000,000)
                06/30/2001            $(104,973,000)
                12/31/2001            $ (94,147,000)
                06/30/2002            $ (70,976,000)
                12/31/2002            $ (18,000,000)
                06/30/2003            $  63,982,000
                12/31/2003            $ 106,506,000
                06/30/2004            $ 174,099,000
                12/31/2004            $ 254,406,000
                06/30/2005            $ 332,296,000
                12/31/2005            $ 404,196,000
                                      $ 482,098,000
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Number
                  ----                ------
                <S>                   <C>
                06/30/2006
                12/31/2006            $ 543,904,000
</TABLE>

                                                       "

     (r)  Section 5.04(d) be deleted in its entirety and replaced with the
following:

               "(d) Total Debt to Contributed Capital. Shall not permit the
                    ---------------------------------
               ratio of (i) Total Debt outstanding as of any date of
               determination to (ii) Contributed Capital as of such date of
               determination to be greater than the ratio corresponding to the
               date set forth below on or at any time during the 12 months
               immediately preceding such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/1999             4.50x
               12/31/2000             2.50x
               12/31/2001             2.50x
               12/31/2002             2.50x
               12/31/2003             2.50x
               12/31/2004             2.50x
               12/31/2005             2.50x
               12/31/2006             2.50x
</TABLE>

                                                   "

     (s) Section 5.04(e) be deleted in its entirety and replaced with the
following:

               "(e) Total Secured Debt to Contributed Capital. Shall not permit
                    -----------------------------------------
               the ratio of (i) Total Debt owed by the Borrower secured by
               Shared Liens outstanding as of any date of determination to (ii)
               Contributed Capital as of such date of determination to be
               greater than the ratio corresponding to the date set forth below
               on or immediately preceding such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/1999             2.00x
               06/30/2000             1.75x
               12/31/2000             1.75x
               06/30/2001             1.75x
               12/31/2001             1.75x
               06/30/2002             1.75x
               12/31/2002             1.75x
               06/30/2003             1.75x
               12/31/2003             1.75x
               06/30/2004             1.75x
                                      1.75x
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2004
               06/30/2005             1.75x
               12/31/2005             1.75x
               06/30/2006             1.75x
               12/31/2006             1.75x
</TABLE>

                                                 "

     (t)  Section 5.04(f) be deleted in its entirety and replaced with the
following:

               "(f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
                    -------------------------------------------------
               permit the ratio of (i) Total Debt owed by the Borrower secured
               by Shared Liens outstanding at of any date of determination to
               (ii) EBITDA for the four consecutive fiscal quarters of the
               Borrower most recently ended on or prior to such date of
               determination to exceed the ratio corresponding to the date set
               forth below on or immediately proceeding such date of
               determination:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2002              N/A
               06/30/2003             6.06x
               12/31/2003             3.90x
               06/30/2004             2.30x
               12/31/2004             1.30x
               06/30/2005             0.80x
               12/31/2005             0.40x
               06/30/2006             0.30x
               12/31/2006             0.20x
</TABLE>

                                                 "

     (u)  Section 5.04(g) be deleted in its entirety and replaced with the
following:

               "(g) EBITDA to Total Cash Debt Service (Debt service coverage
                    --------------------------------------------------------
               ratio). Permit the ratio of (i) EBITDA for the four consecutive
               -----
               fiscal quarters ending on any of the dates set forth below to
               (ii) Total Cash Debt Service for the same period to be less than
               the ratio set forth below opposite such date:

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2002              N/A
               12/31/2002             0.58x
               12/31/2003             0.62x
               06/30/2004             1.05x
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                  Date                Ratio
                  ----                -----
               <S>                    <C>
               12/31/2004             1.40x
               06/30/2005             1.50x
               12/31/2005             2.00x
               06/30/2006             3.00x
               12/31/2006             3.65x
</TABLE>

                                                 "

     (v)  Section 5.02(f) be deleted in its entirety and replaced with the
          following:

               "(f) Other Business. Engage or permit any Subsidiary to engage,
                    --------------
          directly or indirectly, in any business other than the offering of
          data, voice or video services in the Territory, whether as a
          competitive access provider, a competitive local exchange carrier,
          Internet access provider or provider of enhanced Internet services."

     (w)  Section 6.01(q) be amended by inserting the words "of Annex 6"
          immediately before the phrase "of the Supply Agreement".

     (x)  The signature page be amended by deleting the words "(plus undrawn
          Tranche A Commitments at the Tranche A Termination Date)" from the
          Tranche B Commitment language set forth opposite Ericsson's name
          thereon.

2.   We hereby request from Lucent that the Lucent Credit Agreement be amended
     as follows:

     (a)  The first paragraph of the recitals to the Agreement be deleted in its
          entirety and replaced with the following:

               "The Borrower has been formed in order to plan, construct,
          operate and maintain digital wireless local loop voice and data
          networks and Internet infrastructure for web hosting, collocation and
          other enhanced Internet services (each, a "Network") in the United
                                                     -------
          States of America, Mexico, Central America and South America (the
          "Territory") (the planning, construction, operation and maintenance of
           ---------
          the Networks being the "Project")."
                                  -------

     (b)  The definition of "Blocked Account" be amended by inserting the words
          "owing to the Vendor" before the phrase "under the Supply Agreement".

     (c)  The definition of "Core Territories" be deleted in its entirety and
          replaced with the following:

               ""Core Territories" means the United States of America,
                 ----------------
          Argentina, Brazil, Colombia, Panama, Peru and Uruguay."
<PAGE>

     (d)  The definition of "Tranche B Commitment" be deleted in its entirety
          and replaced with the following:

               ""Tranche B Commitment" means, with respect to any Lender at any
                 --------------------
          time, the amount set forth opposite such Lender's name on the
          signature page hereof or, if such Lender has entered into one or more
          Assignment and Acceptances, set forth in the Register maintained by
          the Administrative Agent pursuant to Section 8.07(c) as such Lender's
          "Tranche B Commitment", as such amount may be reduced from time to
          time pursuant to Section 2.04."

     (e)  The definition of "Tranche B Effective Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Effective Date" means, with respect to the Tranche B
                 ------------------------
          Commitments of the Lenders, January 1, 2001."

     (f)  The definition of "Tranche B Termination Date" be deleted in its
          entirety and replaced with the following:

               ""Tranche B Termination Date" means the earlier of the eighteen
                 --------------------------
          month anniversary of the Tranche B Effective Date and the date of
          termination in whole of the Tranche B Commitments pursuant to Section
          2.04 or 6.01."

     (g)  Section 2.01 be amended as follows:

          (i)  The second sentence of Section 2.01(a) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche A Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the 16th
               day of the month preceding the month in which the date of the
               proposed Borrowing falls to the 16th day of the month in which
               the date of the proposed Borrowing falls and (B) that were not
               paid with the proceeds of any prior Borrowing and (ii) interest
               owing on Borrowings to be paid with the proceeds thereof."; and

          (ii) The second sentence of Section 2.01(b) be deleted in its entirety
               and replaced by the following:  "Each Borrowing consisting of
               Tranche B Advances shall be in an amount not exceeding (i)
               amounts owing under invoices (A) issued or accepted by the Vendor
               pursuant to the Supply Agreement during the period from the 16th
               day of the month preceding the month in which the date of the
               proposed Borrowing falls to the 16th day of the month in which
               the date of the proposed Borrowing falls and (B) that were not
               paid with the proceeds of any prior Borrowing and (ii) interest
               owing on Borrowings to be paid with the proceeds thereof."

     (h)  Section 2.02(a)(ii) be amended as follows:
<PAGE>

          (i)  Insertion of a new subclause (C):  "whether such Borrowing will
               be a Tranche A Borrowing or a Tranche B Borrowing,"; and the
               renaming of existing subclauses (C) and (D) as new subclauses (D)
               and (E); and

          (ii) The newly renamed subclause (D) be deleted in its entirety and
               replaced with the following:  "(D) the invoices issued or
               accepted by the Vendor pursuant to the Supply Agreement to be
               paid with the proceeds of such Borrowing, the respective amounts
               of such invoices to be paid and the aggregate amount of such
               invoices to be paid, and".

     (i)  Section 2.03(b) be amended as follows:

               The word "1.10%" contained in the third to last line of Section
          2.03(b) be deleted and replaced with the word "1.45%".

     (j)  Section 2.05(b) be amended as follows:

               The first sentence be deleted and replaced with the following:
          "The Borrower shall repay to the Administrative Agent for the ratable
          account of the Lenders that have made Tranche B Advances the aggregate
          outstanding principal amount of the Tranche B Advances in nine
          installments (i) the first of which shall be payable on January 1,
          2003 and (ii) otherwise payable on the last day of every sixth
          calendar month after the twenty-four month anniversary of the Tranche
          B Effective Date, each in an amount equal to the product obtained by
          multiplying (a) the unpaid principal amount of such Tranche B Advances
          outstanding on the Tranche B Termination Date by (b) 11.111%; provided
                                                                        --------
          that the last such installment shall be in an amount necessary to
          repay in full the unpaid principal amount of the Tranche B Advances."

     (k)  Section 2.13 be amended as follows:

          (i)  deleting the last sentence in its entirety and replacing it with
               the following:

               "The proceeds of the Advances available to make Back-to-Back
               Loans described in clause (a) of the preceding sentence shall be
               paid directly to the financial institution providing Back-to-Back
               Loans and the proceeds of such Back-to-Back Loans made to
               Operating Subsidiaries in Argentina, Brazil, Peru and Uruguay (in
               the case of Uruguay, subject to applicable law) to be used to pay
               invoices issued by the Vendor under the Supply Agreement shall at
               all times be held in Blocked Accounts until disbursed to pay
               invoices owing to the Vendor under the Supply Agreement."; and

          (ii) adding after the first paragraph a second paragraph to read as
               follows:

               "Notwithstanding anything in the Supply Agreement to the
               contrary, the
<PAGE>

                Operating Subsidiaries shall use commercially reasonable efforts
                to use the proceeds of the Back-to-Back Loans to pay amounts
                owing under invoices issued or accepted by the Vendor pursuant
                to the Supply Agreement, and as specified in the related Notice
                of Borrowing, no later than the last day of the month in which
                such proceeds were received."

     (l)  Section 5.02(a) be amended as follows:

          (i)   insertion of a new clause (xii) containing the following:

                "Debt in the form of promissory notes issued to the selling
                stockholders in connection with the acquisition of INEA, S.A.,
                in a principal amount not to exceed $2,800,000, and";

          (ii)  the existing clause (xii) of Section 5.02(a) be renamed clause
                (xiii), and the word "(xi)" in the second line of the renamed
                clause (xiii) be deleted and replaced with the word "(xii)"; and

          (iii) clause (vi) be deleted in its entirety and replaced with the
                following:

                "(vi) Debt incurred in connection with the entering into by the
                Borrower or a Subsidiary thereof of Capitalized Leases in
                aggregate principal amount (including any such Debt incurred to
                refinance such Debt, as permitted by clause (xii) below) at any
                one time outstanding not exceeding (A) $100,000,000, with
                respect to any indefeasible rights of use of fiber and (B)
                $10,000,000, with respect to Capitalized Leases other than
                indefeasible rights of use of fiber,"

     (m)  Section 5.02(o) be deleted in its entirety and replaced with the
          following:

                "(o)  Gross PP&E.  Make or permit its Subsidiaries to make any
                      ----------
                Capital Expenditures that would cause the Gross PP&E of the
                Borrower and its Subsidiaries in any period set forth below to
                exceed the amount set forth below for such period.

                    Year Ending In            Amount
                    --------------            ------
                        12/31/99               $  115,000,000
                        12/31/00               $  325,564,000
                        12/31/01               $  466,052,000
                        12/31/02               $  587,322,000
                        12/31/03               $  716,357,000
                        12/31/04               $  867,065,000
                        12/31/05               $1,028,336,000
<PAGE>

                        12/31/06               $1,204,626,000

     (n)  Section 5.02(p) be deleted in its entirety and replaced with the
following:

               "(p) Lease Obligations. Create, incur, assume or suffer to exist,
                    -----------------
                    or permit any of its Subsidiaries to create, incur, assume
                    or suffer to exist:

                    (i)  any obligations as lessee for the rental or hire of
                    real or personal property of any kind under leases or
                    agreements to lease having a term of one year or more from
                    the date of execution thereof (other than Capitalized
                    Leases) that would cause the direct and contingent
                    liabilities of it and its Subsidiaries, on a Consolidated
                    basis, in respect of all such obligations in any period set
                    forth below to exceed the amount set forth below for such
                    period;

                    Year Ending In            Amount
                    --------------            ------
                      12/31/99                $ 7,500,000
                      12/31/00                $12,723,000
                      12/31/01                $18,283,000
                      12/31/02                $31,472,000
                      12/31/03                $42,835,000
                      12/31/04                $55,702,000
                      12/31/05                $69,685,000
                      12/31/06                $86,153,000

                    or

                    (ii) any obligations under Capitalized Leases that would
                    cause the direct and contingent liabilities of it and its
                    Subsidiaries, on a Consolidated basis, in respect of all
                    such obligations to exceed at any time (A) $100,000,000,
                    with respect to indefeasible rights of use of fiber and (B)
                    $10,000,000, with respect to Capitalized Leases other than
                    indefeasible rights of use of fiber."

     (o)  Section 5.04(a) be deleted in its entirety and replaced with the
     following:

               "(a) Revenue.  Shall not permit its Revenue for the period
                    -------
               beginning on the first day of the Borrower's fiscal year in which
               a date set forth below
<PAGE>

               occurs and ending on such date to be less than the amount
               corresponding to such date under the heading "Revenue" set forth
               below:

                    Date                        Revenue
                                                -------
              -----------------------------------------------
                 12/31/1999                    $      650,000
              -----------------------------------------------
                 03/31/2000                    $      519,000
               ----------------------------------------------
                 06/30/2000                    $    1,530,000
               ----------------------------------------------
                 09/30/2000                    $    3,165,000
               ----------------------------------------------
                 12/31/2000                    $    6,501,000
               ----------------------------------------------
                 03/31/2001                    $    4,739,000
               ----------------------------------------------
                 06/30/2001                    $   11,659,000
               ----------------------------------------------
                 09/30/2001                    $   21,275,000
               ----------------------------------------------
                 12/31/2001                    $   34,331,000
               ----------------------------------------------
                 03/31/2002                    $   21,066,000
               ----------------------------------------------
                 06/30/2002                    $   52,052,000
               ----------------------------------------------
                 09/30/2002                    $   96,045,000
               ----------------------------------------------
                 12/31/2002                    $  157,550,000
               ----------------------------------------------
                 03/31/2003                    $   69,264,000
               ----------------------------------------------
                 06/30/2003                    $  155,844,000
               ----------------------------------------------
                 09/30/2003                    $  249,350,000
               ----------------------------------------------
                 12/31/2003                    $  346,319,000
               ----------------------------------------------
                 03/31/2004                    $  117,257,000
               ----------------------------------------------
                 06/30/2004                    $  263,828,000
               ----------------------------------------------
                 09/30/2004                    $  422,124,000
               ----------------------------------------------
                 12/31/2004                    $  586,283,000
               ----------------------------------------------
                 03/31/2005                    $  177,795,000
               ----------------------------------------------
                 06/30/2005                    $  389,456,000
               ----------------------------------------------
                 09/30/2005                    $  618,049,000
               ----------------------------------------------
                 12/31/2005                    $  846,643,000
               ----------------------------------------------
                 03/31/2006                    $  239,958,000
               ----------------------------------------------
                 06/30/2006                    $  512,637,000
               ----------------------------------------------
                 09/30/2006                    $  796,223,000
               ----------------------------------------------
                 12/31/2006                    $1,090,717,000
               ----------------------------------------------

     (p)  Section 5.04(b) be deleted in its entirety and replaced with the
following:

               "(b) Total Voice Grade Equivalents. Shall not permit the total
               number of Voice Grade Equivalents of the Borrower and its
               Subsidiaries as of any date set forth below to be less than the
               number corresponding to such date under the heading "Number" set
               forth below:

                   Date                   Number
                   ----                   ------
                12/31/1999                 736
<PAGE>

                   Date                   Number
                   ----                   ------
                06/30/2000                    3,071
                12/31/2000                    9,040
                06/30/2001                   22,999
                12/31/2001                   50,859
                06/30/2002                  154,612
                12/31/2002                  251,548
                06/30/2003                  398,177
                12/31/2003                  544,806
                06/30/2004                  723,723
                12/31/2004                  902,639
                06/30/2005                1,074,614
                12/31/2005                1,246,590
                06/30/2006                1,428,556
                12/31/2006                1,610,522

     (q)  Section 5.04(c) be deleted in its entirety and replaced with the
following:

               "(c) EBITDA.  Shall not permit EBITDA for the four fiscal
               quarters of the Borrower immediately preceding any date set forth
               below to be less than the amount set forth under the heading
               "Amount" corresponding to such date:

                   Date                   Amount
                   -----                  ------
                12/31/1999               $ (33,400,000)
                06/30/2000               $ (65,781,000)
                12/31/2000               $ (99,000,000)
                06/30/2001               $(104,973,000)
                12/31/2001               $ (94,147,000)
                06/30/2002               $ (70,976,000)
                12/31/2002               $ (18,000,000)
                06/30/2003               $  63,982,000
                12/31/2003               $ 106,506,000
                06/30/2004               $ 174,099,000
                12/31/2004               $ 254,406,000
                06/30/2005               $ 332,296,000
                12/31/2005               $ 404,196,000
                06/30/2006               $ 482,098,000
                12/31/2006               $ 543,904,000
<PAGE>

     (r)  Section 5.04(d) be deleted in its entirety and replaced with the
following:
               "(d) Total Debt to Contributed Capital. Shall not permit the
                    ---------------------------------
               ratio of (i) Total Debt outstanding as of any date of
               determination to (ii) Contributed Capital as of such date of
               determination to be greater than the ratio corresponding to the
               date set forth below on or at any time during the 12 months
               immediately preceding such date:

                   Date                 Ratio
                   ----                 -----
                12/31/1999              4.50x
                12/31/2000              2.50x
                12/31/2001              2.50x
                12/31/2002              2.50x
                12/31/2003              2.50x
                12/31/2004              2.50x
                12/31/2005              2.50x
                12/31/2006              2.50x

     (s)  Section 5.04(e) be deleted in its entirety and replaced with the
following:

               "(e) Total Secured Debt to Contributed Capital. Shall not permit
                    -----------------------------------------
               the ratio of (i) Total Debt owed by the Borrower secured by
               Shared Liens outstanding as of any date of determination to (ii)
               Contributed Capital as of such date of determination to be
               greater than the ratio corresponding to the date set forth below
               on or immediately preceding such date:

                   Date                 Ratio
                   ----                 -----
                12/31/1999              2.00x
                06/30/2000              1.75x
                12/31/2000              1.75x
                06/30/2001              1.75x
                12/31/2001              1.75x
                06/30/2002              1.75x
                12/31/2002              1.75x
                06/30/2003              1.75x
                12/31/2003              1.75x
                06/30/2004              1.75x
                12/31/2004              1.75x
                06/30/2005              1.75x
                12/31/2005              1.75x
                06/30/2006              1.75x
                12/31/2006              1.75x
<PAGE>

     (t)  Section 5.04(f) be deleted in its entirety and replaced with the
following:
               "(f) Total Secured Debt to EBITDA (Cash Flow multiple). Shall not
                    ------------------------------------------------
               permit the ratio of (i) Total Debt owed by the Borrower secured
               by Shared Liens outstanding at of any date of determination to
               (ii) EBITDA for the four consecutive fiscal quarters of the
               Borrower most recently ended on or prior to such date of
               determination to exceed the ratio corresponding to the date set
               forth below on or immediately proceeding such date of
               determination:

                   Date               Ratio
                   ----               -----
                12/31/2002             N/A
                06/30/2003             6.06x
                12/31/2003             3.90x
                06/30/2004             2.30x
                12/31/2004             1.30x
                06/30/2005             0.80x
                12/31/2005             0.40x
                06/30/2006             0.30x
                12/31/2006             0.20x

     (u)  Section 5.04(g) be deleted in its entirety and replaced with the
following:

               "(g) EBITDA to Total Cash Debt Service (Debt service coverage
                    --------------------------------------------------------
               ratio). Permit the ratio of (i) EBITDA for the four consecutive
               -----
               fiscal quarters ending on any of the dates set forth below to
               (ii) Total Cash Debt Service for the same period to be less than
               the ratio set forth below opposite such date:

                   Date               Ratio
                   ----               -----
                12/31/2002            N/A
                06/30/2003            0.58x
                12/31/2003            0.62x
                06/30/2004            1.05x
                12/31/2004            1.40x
                06/30/2005            1.50x
                12/31/2005            2.00x
                06/30/2006            3.00x
                12/31/2006            3.65x
<PAGE>

     (v)  Section 5.02(f) be deleted in its entirety and replaced with the
          following:
               "(f) Other Business.  Engage or permit any Subsidiary to engage,
          directly or indirectly, in any business other than the offering of
          data, voice or video services in the Territory, whether as a
          competitive access provider, a competitive local exchange carrier,
          Internet access provider or provider of enhanced Internet services."

     (w)  The signature page be amended by deleting the words "(plus undrawn
          Tranche A Commitments at the Tranche A Termination Date)" from the
          Tranche B Commitment language set forth opposite Lucent's name
          thereon.

3.   We hereby request that the Administrative Agent under each Credit Agreement
waive:

     (a)  until April 30, 2000 the requirements of Sections 5.01(k) and
          5.02(k)(viii)(B) of such Credit Agreement (and any Default pursuant to
          Section 6.01(c) caused by the failure to fulfill such requirements)
          with respect to Investments made by the Borrower and its Subsidiaries
          pursuant to Section 5.02(k)(viii)(B) in Tellink S.A. and Eritown,
          S.A.;

     (b)  with respect to any Borrowing under such Credit Agreement occurring
          prior to April 30, 2000, the requirements of the last sentence of
          Section 2.13;

     (c)  until April 30, 2000 any misrepresentation under Section 4.01(bb) of
          such Credit Agreement (and any Default pursuant to Section 6.01(b)
          caused by such misrepresentation) due to the existence of undisclosed
          taxes, levies, imposts, deductions, charges or withholdings imposed,
          levied or made by or in Uruguay or any political subdivision or taxing
          authority thereof or therein.

4.   We hereby request that Ericsson acknowledge that the requirements of
Section 3.03(h) and 3.03(i)(viii) (with respect to the Ericsson Credit
Agreement) and Lucent acknowledge that the requirements of Section 3.01(h) and
3.01(i)(viii) (with respect to the Lucent Credit Agreement) do not include the
execution and delivery of (i) a pledge of accounts receivable by Diveo do Brasil
Telecomunicacoes Ltda. (or the creation and perfection of any Liens contemplated
thereunder) or (ii) an agreement executed by Diginet Peru Sociedad Comercial de
Responsabilidad Limitada pledging, conveying or otherwise granting Liens upon
substantially all of its assets (or the creation and perfection of any Liens
contemplated thereunder). We hereby further request that each Administrative
Agent waive our obligation set forth in paragraph 4 of Waiver and Amendment No.
1 to the Credit Agreements dated as of January 14, 2000 with respect to the
documents described in clauses (i) and (ii) of the immediately preceding
sentence; we agree to execute and deliver such documents described prior to
April 30, 2000 or the obligation of the Lenders to make Advances under each
Credit Agreement shall terminate. We hereby further request that Lucent waive
our noncompliance with the requirement of Section 2.03(d) under the Lucent
Credit Agreement to pay the Tranche A Facility Fee on the Tranche A
<PAGE>

Effective Date, provided that we shall have made payment of the Tranche A
Facility Fee to Lucent on or before the date hereof.

5.   We hereby acknowledge and consent that Harris Corporation and its
Affiliates shall be considered an "Eligible Assignee" for purposes of each
Credit Agreement and Ericsson or Lucent, as the case may be, may assign to said
party a portion of its rights and obligations under such Credit Agreement in
accordance with Section 8.07 thereof.

6.   We hereby agree with Ericsson and Lucent that the amendments set forth in
items 1(m) through (u) (inclusive) and in items 2(m) through (u) (inclusive),
respectively, shall cease to be effective if, within 15 days after the date
hereof, the Parent fails to raise at least $125,000,000 of cash equity capital
in excess of the cash equity capital raised by it prior to the date hereof.

7.   This Waiver and Amendment No. 2 shall become effective as of the date first
above written when, and only when, on or before March 29, 2000, the
Administrative Agent under each Credit Agreement shall have received
counterparts of this Waiver and Amendment No. 2 executed by the Required Lenders
or, as to any of the Lenders, advice satisfactory to such Administrative Agent
that such Lender has executed this Waiver and Amendment No. 2.  With respect to
each Credit Agreement, this Waiver and Amendment No. 2 is subject to the
provisions of Section 8.01 of such Credit Agreement.

8.   Each Credit Agreement, except to the extent of the waivers and amendments
specifically provided above, is and shall continue to be in full force and
effect and is hereby in all respects ratified and confirmed.  The execution,
delivery and effectiveness of this Waiver and Amendment No. 2 shall not, except
as expressly provided herein, operate as a waiver of any right, power or remedy
of any Party under any Credit Agreement, nor constitute a waiver of any
provision of any Credit Agreement.

9.   On and after the effectiveness of this Waiver and Amendment No. 2, each
reference in each Credit Agreement to "this Agreement", "hereunder", "hereof" or
words of like import referring to such Credit Agreement, and each reference in
each of the other Loan Documents relating to such Credit Agreement to "the
Credit Agreement", "thereunder", "thereof" or words of like import referring to
such Credit Agreement, shall mean and be a reference to such Credit Agreement,
as amended by this Waiver and Amendment No. 2.

10.  If you agree to the terms and provisions of this Waiver and Amendment No.
2, please evidence such agreement by executing and returning at least two
counterparts of this Waiver and Amendment No. 2 to each of (i) Nicole Jerabek at
Shearman & Sterling, 599 Lexington Avenue, New York, NY 10022 (Telecopier: (212)
848-7179; Telephone: (212) 848-4835) and (ii) George Schoen at Cravath, Swaine &
Moore, 825 Eighth Avenue, New York, NY 10019 (Telecopier: (212) 474-3700;
Telephone (212) 474-1740).

11.  This Waiver and Amendment No. 2 may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Delivery of an executed
counterpart of a signature page to this Waiver and
<PAGE>

Amendment No. 2 by telecopier shall be effective as delivery of a manually
executed counterpart of this Waiver and Amendment No. 2.

12.  This Waiver and Amendment No. 2 shall be governed by, and construed in
accordance with, the laws of the State of New York.

                              DIVEO, INC.

                              By ______________________________________
                                 Name:
                                 Title:

Agreed as of the date first above written:

ERICSSON CREDIT AB

By________________________
  Name:
  Title:

LUCENT TECHNOLOGIES INC.

By________________________
  Name:
  Title:
<PAGE>

                                    CONSENT

          EACH OF THE UNDERSIGNED, as of the date of the foregoing Amendment,
consents to such Amendment and confirms and agrees that notwithstanding the
effectiveness of such Amendment and any prior amendments to the Credit
Agreement, the Guaranties and each other Loan Document to which it is a party
are, and shall continue to be, in full force and effect and are hereby ratified
and confirmed in all respects, except that, on and after the effectiveness of
such Amendment, each reference in each such Loan Document to the "Credit
Agreement", "thereunder", "thereof" or words of like import shall mean and be a
reference to the Credit Agreement, as amended by such Amendment and all prior
amendments thereto.

DIGINET ARGENTINA, INC.                       DIGINET BRAZIL, INC.

By_________________________                   By_________________________
Title:                                          Title:

DIGINET COLOMBIA, INC.                        DIGINET PANAMA INC.

By_________________________                   By_________________________
 Title:                                         Title:

DIGINET VENTURES/MEGALINK, INC.               DIGINET PERU INC.

By_________________________                   By_________________________
 Title:                                       Title:
<PAGE>

DIGINET ARGENTINA S.A.                        DIGINET COMUTACAO DIGITAL LTDA.

By_________________________                   By_________________________
 Title:                                         Title:

DIVEO DO BRASIL                               DIGINET TELECOMUNICACIONES DE
TELECOMUNICACOES LTDA.                        PANAMA S.A.

By_________________________                   By_________________________
 Title:                                         Title:

DIGINET PERU SOCIEDAD COMERCIAL DE
RESPONSIBILIDA LIMITADA

By_________________________
 Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]