Document:

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                                                                    EXHIBIT 10.9

                                                           EXECUTION COUNTERPART

                                                       EDC LOAN NO.: CHIL - 7078
                                                       IDB LOAN NO.: 1227/OC-CH

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                                COMMON AGREEMENT

                                  dated as of

                               December 22, 1999

                                     among

                      COMUNICACION Y TELEFONIA RURAL S.A.,

                         EXPORT DEVELOPMENT CORPORATION

                                      and

                        INTER-AMERICAN DEVELOPMENT BANK

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                                TABLE OF CONTENTS

                  This Table of Contents is not part of the Agreement to which
 it is attached but is inserted for convenience of reference only.

<TABLE>
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Section 1. Definitions and Accounting Matters..............................................................     1
        1.01 Certain Defined Terms.........................................................................     1
        1.02 Principles of Construction....................................................................    20
        1.03 Accounting Terms and Determinations...........................................................    21
        1.04 Conflicts.....................................................................................    21

Section 2. Senior Loan Agreements.........................................................................     21
        2.01 Indebtedness Subject to this Agreement........................................................    21
        2.02 Senior Loans Pari Passu.......................................................................    21
        2.03 Pro Rata Payment of Obligations...............................................................    21
        2.04 Non-Pro Rata Prepayment.......................................................................    21
        2.05 Optional Prepayments..........................................................................    22
        2.06 Mandatory Prepayments.........................................................................    23
        2.07 Payments......................................................................................    24

Section 3. Reserved.......................................................................................     24

Section 4. Accounts........................................................................................    24
        4.01 Creation of the Accounts and the Borrower Accounts............................................    24
        4.02 Limited Borrower Rights.......................................................................    25
        4.03 Operating Account.............................................................................    25
        4.04 EDC Accrual Account...........................................................................    27
        4.05 IDB Accrual Account...........................................................................    27
        4.06 Cash Sweep Account............................................................................    28
        4.07 Debt Service Reserve Account..................................................................    28
        4.08 Investment of Funds in Accounts...............................................................    29
        4.09 Reports to the Senior Lenders.................................................................    29
        4.10 Currency Conversion...........................................................................    29
        4.11 Changes to Accounts...........................................................................    29

Section 5. Effectiveness vis-a-vis the Borrower...........................................................     30

Section 6. Conditions.....................................................................................     30
        6.01 Initial Disbursement..........................................................................    30
        6.02 Initial and Subsequent Disbursements..........................................................    33

Section 7. Representations and Warranties..................................................................    35
        7.01 Organization and Powers.......................................................................    35
        7.02 Authorization; Enforceability.................................................................    35
        7.03 Approvals.....................................................................................    35
        7.04 No Breach.....................................................................................    35
</TABLE>

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<TABLE>
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        7.05 Financial Condition; No Material Adverse Change...............................................    36
        7.06 Properties....................................................................................    36
        7.07 Litigation....................................................................................    37
        7.08 Compliance with Laws and Agreements...........................................................    37
        7.09 Taxes ........................................................................................    37
        7.10 True and Complete Disclosure..................................................................    37
        7.11 Material Agreements and Liens.................................................................    38
        7.12 Capitalization................................................................................    38
        7.13 Legal Form....................................................................................    39
        7.14 Ranking.......................................................................................    39
        7.15 Security Interests............................................................................    39
        7.16 Commercial Activity; Absence of Immunity......................................................    40
        7.17 Insurance.....................................................................................    40
        7.18 Business Purpose..............................................................................    40
        7.19 Environmental Matters.........................................................................    41
        7.20 Qualification.................................................................................    41
        7.21 Domicile......................................................................................    42
        7.22 Choice of Law.................................................................................    42

Section 8. Covenants of the Borrower......................................................................     42
        8.01 Financial Statements and Other Information....................................................    42
        8.02 Notices of Material Events....................................................................    43
        8.03 Existence, Compliance, Records, Inspection, Etc...............................................    44
        8.04 Insurance.....................................................................................    45
        8.05 Prohibition of Fundamental Changes............................................................    47
        8.06 Liens.........................................................................................    48
        8.07 Indebtedness..................................................................................    49
        8.08 Investments...................................................................................    49
        8.09 Restricted Payments...........................................................................    50
        8.10 Certain Financial Covenants...................................................................    50
        8.11 Subordinated Indebtedness.....................................................................    51
        8.12 Lines of Business.............................................................................    51
        8.13 Use of Proceeds...............................................................................    51
        8.14 Subsidiaries..................................................................................    52
        8.15 Implementation of the Project.................................................................    52
        8.16 Project Documents.............................................................................    52
        8.17 Equity........................................................................................    53
        8.18 Environmental Matters.........................................................................    53
        8.19 Transaction with Affiliates or Joint Ventures.................................................    54
        8.20 Financial Completion..........................................................................    54
        8.21 Security......................................................................................    55

Section 9. Events of Default...............................................................................    55

Section 10. Miscellaneous..................................................................................    59
        10.01 Notices......................................................................................    59
        10.02 Waiver.......................................................................................    60
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                                     - ii -

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<TABLE>
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        10.03 Amendments, Etc..............................................................................    60
        10.04 Expenses.....................................................................................    60
        10.05 Successors and Assigns.......................................................................    61
        10.06 Survival.....................................................................................    61
        10.07 Counterparts.................................................................................    61
        10.08 Governing Law; Jurisdiction; Service of Process; Etc.........................................    61
        10.09 WAIVER OF JURY TRIAL.........................................................................    62
        10.10 No Immunity..................................................................................    62
        10.11 Judgment Currency............................................................................    63
        10.12 Use of English Language......................................................................    63
        10.13 Severability.................................................................................    63
</TABLE>

SCHEDULE I   - Material Agreements and Liens

SCHEDULE II  - Governmental Approvals

SCHEDULE III - IDB Member Countries

SCHEDULE IV  - EBITDA

SCHEDULE V   - Recurring Revenues

EXHIBIT A    - Schedule of Insurance Requirements

EXHIBIT B    - Form of Monthly Report

EXHIBIT C    - Terms of Subordination

EXHIBIT D    - Form of Independent Engineer Certificate

EXHIBIT E    - Form of Process Agent Acceptance

EXHIBIT F    - Form of Letter to the Borrower's Auditors

                                     - iii -

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                  COMMON AGREEMENT (this "Agreement") dated as of December 22,
1999, among: COMUNICACION Y TELEFONIA RURAL S.A., a sociedad anonima duly
organized and validly existing under the laws of Chile (the "Borrower"); EXPORT
DEVELOPMENT CORPORATION, a corporation established by an Act of the Parliament
of Canada ("EDC"); and INTER-AMERICAN DEVELOPMENT BANK, an international
organization established by the Articles of Agreement among its member countries
("IDB").

                  In order to finance the development and construction of the
Project (as defined below), the Borrower has requested that EDC and IDB
separately make loans to it in an aggregate principal amount not exceeding
$50,000,000. The execution of this Agreement, which provides for, among other
things, certain common conditions precedent, representations, warranties,
covenants and events of default applicable to the loan facilities to be provided
by both EDC and IDB, is a condition precedent to the obligation of EDC and IDB
to extend credit to the Borrower. EDC and IDB are prepared to make such loans
upon the terms and conditions hereof and upon the terms and conditions of the
Senior Loan Agreements (as defined below) to which each is a party, and,
accordingly, the parties hereto agree as follows:

                  Section 1. Definitions and Accounting Matters.

                  1.01 Certain Defined Terms. As used herein, the following
terms shall have the following meanings (all terms defined in this Section 1.01
or in other provisions of this Agreement in the singular to have the same
meanings when used in the plural and vice versa):

                  "Account Bank" means Banco Sud Americano, in its capacity as
Account Bank under the Project Account Agreement.

                  "Accounts" has the meaning assigned to such term in Section
4.01 (a).

                  "Adjusted DSCR" means, solely for the purposes of determining
Financial Completion, for any period, the quotient of (a) revenues less
Operating Costs, taxes, Capital Expenditures, and changes in working capital
during such period; divided by (b) the sum of interest, average principal
payments to be made over the repayment period of the Senior Loans, fees due
under Permitted Indebtedness (other than Subordinated Indebtedness) and any
financing costs due and payable, in each case, during such period.

                  "Affiliate" means, as to any Person, any other Person (other
than a Subsidiary) which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person. For purposes of
this definition, "control" of a Person means the power, directly or indirectly,
either to (a) vote 10% or more of the securities having ordinary voting power
for the election of directors of such Person or (b) direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.

                  "Agreed Financial Model" means the financial model dated
December 1999, in form and substance satisfactory to the Senior Lenders,
prepared and certified by the Borrower and SRT and designed to assess the
current and future revenues and expenditures of the Borrower.

                                Common Agreement

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                                      - 2 -

                  "Authorized Officer" means, with respect to any Person, the
Managing Director, the President, the Vice President, the Assistant Vice
President, the Treasurer, the Assistant Treasurer or equivalent officers of such
Person and. with respect to the Borrower, shall include any officer or
representative holding any of the foregoing positions (or their equivalent)
whose name appears on a certificate of incumbency delivered concurrently with
the execution of this Agreement or concurrently with the initial disbursement of
the IDB Loan pursuant to Section 2.02 of the IDB Loan Agreement, as such
certificate of incumbency may be amended from time to time to identify names of
individuals then holding such offices or the names of such representatives and
the capacity in which they are acting.

                  "Borrower Accounts" has the meaning assigned to such term in
Section 4.01(b).

                  "Borrower Material Adverse Effect" means the occurrence of any
event which could result in a material adverse effect on (a) the Project, (b)
the Property, business, operations, financial condition, liabilities or
capitalization of the Borrower, (c) the ability of the Borrower to perform its
obligations under any of the Transaction Documents to which it is a party, (d)
the validity or enforceability of any of the Transaction Documents, (e) the
rights and remedies of the Senior Lenders under any of the Transaction Documents
or (f) the timely payment of the principal of or interest on the Senior Loans or
other amounts payable in connection therewith.

                  "Business Day" means (a) with respect to a borrowing of, a
payment or prepayment of principal of or interest on, or an "Interest Period"
(as defined in each Senior Loan Agreement) for, any Senior Loan or a notice by
the Borrower with respect to any such borrowing, payment, prepayment or Interest
Period, a day which is both a New York Business Day and a London Business Day
and (b) with respect to any other reference to "Business Day", any day on which
commercial banks are not authorized or required to close in New York City and
Ottawa, Ontario.

                  "Business Plan" means the Information for Proposed Debt
Holders dated November 1998 and reviewed by Deloitte & Touche, Chartered
Accountants.

                  "BVI Holdco" means CTR Holdings Limited, a limited liability
company duly organized and validly existing under the laws of the British Virgin
Islands.

                  "Canadian GAAP" means generally accepted accounting principles
in Canada, in effect from time to time.

                  "Capital Expenditures" means, for any period, expenditures
(including, without limitation, the aggregate amount of Capital Lease
Obligations incurred during such period) made by the Borrower to acquire or
construct fixed assets, plant and equipment and related installation charges
(including renewals, improvements and replacements, but excluding repairs)
during such period computed in accordance with Canadian (GAAP).

                  "Capital Lease Obligations" means, for any Person, all
obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such
obligations are required to be classified and accounted for as a capital lease
on a balance sheet of such Person under Canadian GAAP, and, for purposes of this

                                Common Agreement

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Agreement, the amount of such obligations shall be the capitalized amount
thereof, determined in accordance with Canadian GAAP.

                  "Cash Sweep Account" has the meaning assigned to such term in
Section 4.0 l(a)(iv).

                  "Central Bank of Chile" means Banco Central de Chile, a public
autonomous governmental entity of Chile.

                  "Chile" means the Republic of Chile.

                  "Chilean GAAP" means generally accepted accounting principles
in Chile, in effect from time to time.

                  "Chilean Holdco" means Servicios Rurales de Telecomunicaciones
S.A., a sociedad anonima duly organized and validly existing under the laws of
Chile.

                  "Chilean Holdco Pledge Agreements" means, collectively, (a)
that certain shareholders pledge agreement dated as of April 13, 1999, created
by BVI Holdco in favour of EDC, (b) that certain shareholders pledge agreement
dated as of April 13, 1999, created by SR (BV) Holdings in favour of EDC, and
(c) that certain shareholders pledge agreement, to be executed and delivered in
form and substance satisfactory to the Senior Lenders on or prior to the Closing
Date, created by BVI Holdco in favour of IDB, in each case, pledging the capital
stock of Chilean Holdco.

                  "Chilean Pesos" means the lawful money of Chile.

                  "Chilean Pledge Agreements" means the Shareholders Pledge
Agreements and the Chilean Holdco Pledge Agreements.

                  "Chilean Security Documents" means, collectively, the
Commercial Pledge to EDC on Concessions of Telecommunications. Commercial Pledge
to IDB on Concessions of Telecommunications, the Pledges Without Conveyance on
Chattel Property, the Chilean Pledge Agreements, the Conditional Assignments,
the Promise to Grant a Commercial Pledge on Concessions of Telecommunications,
the Promise to Grant a Pledge Without Conveyance on Chattel Property, the
Promise to Execute Conditional Assignment of Rights and the Project Account
Agreement.

                  "Closing Date" means the date upon which (a) each of the
conditions set forth in Section 6.01 are satisfied or waived and (b) the initial
disbursement of the IDB Loan is made pursuant to Section 2.02 of the IDB Loan
Agreement.

                  "Collateral" means, collectively, all of the rights, interests
and property intended to be pledged or assigned for the benefit of either Senior
Lender or both Senior Lenders, as the case may be by the Borrower or any other
Person, in any case pursuant to the Security Documents for the purpose of
securing the Obligations.

                                Common Agreement

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                                      - 4 -

                  "Collection Account Agreements" means, collectively, (a) that
certain account agreement to be executed and delivered in form and substance
satisfactory to the Senior Lenders on or prior to the Closing Date by the
Borrower and Banco BHIF and (b) that certain account agreement to be executed
and delivered in form and substance satisfactory to the Senior Lenders by the
Borrower and Banco del Estado, in each case, providing for the automatic
transfer of collected credit balance of any Collection Account to the Operating
Account and prohibiting the Borrower from making any other transfers from any
Collection Account.

                  "Collection Accounts" has the meaning assigned to such term in
Section 4.01(b)(ii) of this Agreement.

                  "Commercial Pledge to EDC on Concessions of
Telecommunications" means the pledge dated as of April 13, 1999 regulated by
articles 813 and following of the Commerce Code of Chile created by the Borrower
on certain concessions of telecommunications held by the Borrower granted in
favour of EDC.

                  "Commercial Pledge to IDB on Concessions of
Telecommunications" means the pledge, to be executed and delivered in form and
substance satisfactory to the Senior Lenders on or prior to the Closing Date,
regulated by articles 813 and following of the Commerce Code of Chile created by
the Borrower on certain concessions of telecommunications held by the Borrower
granted in favour of IDB.

                  "Commitment" means, collectively, the EDC Commitment and the
IDB Commitment.

                  "Completion of Network Construction" has the meaning assigned
to such term in Section 2.01 of the Performance Undertaking.

                  "Concessions" means each of the concessions, listed under the
heading "Concessions" on Schedule II hereto and any other concessions obtained
subsequent to the date hereof, for the operation of a public telephone network
in each of the nine primary zones involved in the Project.

                  "Conditional Assignments" means, collectively, the Telsur
Conditional Assignment, the ENTEL Conditional Assignment, the CTC Conditional
Assignment, the SRT Conditional Assignment and any other conditional assignment
(in form and content satisfactory to the Senior Lenders, acting reasonably) from
each Person (other than the Borrower) party to a Project Document.

                  "Contractor" means any Person who performs services, such as
construction, operation, or maintenance, related to the Project in the capacity
of an independent contractor of the Borrower (rather than in the capacity of an
employee).

                  "Covered Taxes" means all present and future income, stamp,
registration and other taxes and levies, imposts, deductions, charges,
compulsory loans and withholdings whatsoever, and all interest, penalties or
similar amounts with respect thereto, now or hereafter imposed, assessed, levied
or collected by any authority of or in any jurisdiction (including, without
limitation, Chile or any political subdivision or taxing authority thereof or
therein, or any

                                Common Agreement

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                                      - 5 -

federal or other association of or with which Chile may be a member or
associated) on or in respect of the Senior Loans, this Agreement, the Notes, the
other Financing Documents, the recording, registration, notarization or other
formalization of any thereof, the enforcement thereof or the introduction
thereof in any judicial proceedings, or on or in respect of any payments of
principal, interest, premium, charges, fees or other amounts made on, under or
in respect of any thereof.

                  "CTC" means Compania de Telecomunicaciones de Chile S.A., a
sociedad anonima duly organized and validly existing under the laws of Chile.

                  "CTC Conditional Assignment" means the Conditional Assignment,
to be executed and delivered in form and substance satisfactory to the Senior
Lenders on or prior to the Closing Date, among CTC, the Borrower and the Senior
Lenders.

                  "CTC Interconnection Agreement" means, collectively, (a) the
Interconnection Agreement for long distance telephone calls dated as of July 26,
1999 between CTC and the Borrower, and (b) the Service Agreement for long
distance telephone calls dated as of May 25, 1998 between CTC and the Borrower.

                  "Custodian" means Banco Sud Americano in its capacity as
Custodian under the Custodian Agreement.

                  "Custodian Agreements" means, collectively, the EDC Custodian
Agreement and the IDB Custodian Agreement.

                  "Date Certain" means December 31, 2000.

                  "Debt Service" means, for any period, the sum, for the
Borrower (determined in accordance with Canadian GAAP), of the following: (a)
all regularly scheduled payments of principal of Indebtedness (including,
without limitation, the principal component of any payments in respect of
Capital Lease Obligations) made during such period, plus (b) all payments in
respect of operating lease obligations made during such period plus (c) all
Interest Expense for such period plus (d) any fees incurred in connection with
Indebtedness.

                  "Debt Service Coverage Ratio" means, as at any date, the ratio
of (a) Free Cash Flow for the period of four consecutive fiscal quarters ending
on or most recently ended prior to such date to (b) Debt Service for such
period.

                  "Debt Service Reserve Account" has the meaning assigned to
such term in Section 4.0l(a)(iii).

                  "Debt Service Reserve Deficiency" means, on any date of
determination, the amount, if any. by which the collected credit balance of the
Debt Service Reserve Account is less than the Debt Service Reserve Requirement
for such date of determination.

                  "Debt Service Reserve Requirement" means, on any date of
determination, an amount equal to the sum of (a) the aggregate amount of
interest on the Senior Loans projected to accrue during the six-month period
following such date using the interest rates in effect with

                                Common Agreement

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                                      - 6 -

respect to such Senior Loans outstanding on such date of determination, plus (b)
the aggregate amount of principal of Senior Loans then scheduled to become due
on the next Principal Payment Date.

                  "Default" means an Event of Default or an event that with
notice or lapse of time or both would, unless cured or waived, become an Event
of Default.

                  "Direct Agreement" means the Amended and Restated Direct
Agreement dated as of the date hereof among SRT, the Borrower and the Senior
Lenders.

                  "Dollars" and "$" each means the lawful money of the United
States of America.

                  "EBITDA" means, for any period, the sum, for the Borrower
(determined in accordance with Canadian GAAP), of the following: net income for
such period less extraordinary gains for such period, less SUBTEL subsidies
during such period, less foreign exchange gains during such period, plus foreign
exchange losses during such period, plus extraordinary losses for such period,
plus taxes paid and provisions for taxes made during such period, plus Interest
Expense for such period, plus depreciation and amortization.

                  "EDC" has the meaning assigned to such term in the Preamble to
this Agreement.

                  "EDC Accrual Account" has the meaning assigned to such term in
Section 4.0l(a)(i).

                  "EDC Commitment" has the meaning assigned to the term
"Commitment" in the EDC Loan Agreement.

                  "EDC Custodian Agreement" means the Custodian Agreement dated
as of April 13, 1999 among the Borrower, EDC and the Custodian.

                  "EDC Loan Agreement" means the Amended and Restated Loan
Agreement dated as of the date hereof between the Borrower and EDC.

                  "EDC Loans" means the loans made by EDC to the Borrower
pursuant to Section 2.01 of the EDC Loan Agreement.

                  "EDC Notes" means any promissory note delivered by the
Borrower to EDC in connection with the EDC Loan Agreement.

                  "EHSM Plan" means the Borrower's Environmental, Health and
Safety Management Plan ("Plan de Gestion Ambiental. Salud y Seguridad") by
Ambiental Consultores Limitada dated December 6, 1999. The EHSM Plan shall
include all the actions necessary to comply with all Environmental Requirements
and shall include, without limitation, the following: (a) a detailed description
of all necessary environmental and social mitigation measures and monitoring
programs, which are, at a minimum, those measures and monitoring programs
defined in any environmental impact assessment and related Governmental
Approvals; (b) an estimated cost, time schedule and assigned responsibility for
implementation for each mitigation measure and monitoring program; (c) a
description of the specific project supervision

                                Common Agreement

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                                      - 7 -

methods to be implemented to ensure that all measures and programs are
completely and properly implemented by all responsible parties; (d) a
description of the planned environmental, health and safety management system,
including description of personnel and their duties, training, and other related
plans and procedures (e.g., contingency plans, health and safety plans, etc.);
and (e) a description of ongoing public consultation and information disclosure
activities. The EHSM Plan shall address the construction and operational phases
of all relevant Project components.

                  "ENTEL" means Empresa Nacional de Telecomunicaciones S.A., a
sociedad anonima duly organized and validly existing under the laws of Chile.

                  "ENTEL Conditional Assignment" means the Conditional
Assignment of Rights (Entel Interconnection Agreement (Long Distance)), to be
executed and delivered in form and substance satisfactory to the Senior Lenders
on or prior to the Closing Date, among ENTEL, the Borrower and the Senior
Lenders.

                  "ENTEL Interconnection Agreement (Long Distance)" means,
collectively, (a) the Interconnection Agreement for long distance telephone
calls dated as of June 25, 1998 between ENTEL and the Borrower, and (b) the
Service Agreement for long distance telephone calls dated as of May 25, 1998
between ENTEL and the Borrower.

                  "Environmental and Social Compliance Report" shall include, at
a minimum, the following: (a) certification by an authorized representative of
compliance with all Environmental Requirements by the Project, the Borrower, and
any Contractor, and that the information presented in such report is correct and
accurate; (b) information concerning any and all non-compliance with any
Environmental Requirement which occurred during the reporting period, including
a brief description and justification and corrective measures taken; (c)
description of any and all relevant environmental or social issues/problems,
worker accidents, etc. and actions taken and measures implemented in order to
prevent the repetition of the same; (d) description of any and all environmental
or social risks or liabilities, either existing or foreseen; (e) description of
any and all environmental, social, or health and safety complaints, demands,
inquiries, third party communications, or Environmental Claims concerning the
Project, the Borrower, or any Contractor in relation to the Project; (f)
description of the status and results of all environmental, social, and health
and safety programs and summary of the previous time/reporting period
results/data from the environmental, social and health and safety monitoring
programs; (g) description of material Capital Expenditures, material increases
in operating expenses and other actions or activities planned to be performed
during the next report period to comply with Environmental Requirements and
Governmental Approvals and prevent Environmental Claims that are not already
included in the Environmental Reports, including any estimated costs that are
material, a schedule and a designation of responsibility for implementation of
such planned actions or activities: (h) description of ongoing public disclosure
and public consultation activities that were performed during the reporting
period; and (i) copies of any and all environmental, social or health and safety
documents or reports executed in order to satisfy Environmental Laws or material
correspondences with Governmental Bodies.

                  "Environmental Claim" means, with respect to any Person, any
administrative, regulatory or judicial notice, claim, action, suit, judgment,
demand or other communication

                                Common Agreement

<PAGE>

                                      - 8 -

(whether written or oral) by any other Person alleging or asserting such
Person's liability for investigatory costs, cleanup costs, governmental response
costs, damages to natural resources or other property of the claiming Person,
personal injuries, fines or penalties arising out of, based on or resulting from
(a) the presence, use or release into the environment of any Hazardous Material
at any location, whether or not owned by such Person; or (b) any fact,
circumstance, condition or occurrence forming the basis of any violation, or
alleged violation, of any Environmental Law including without limitation (i) any
and all claims by any Governmental Body for enforcement, cleanup, removal,
response, remedial or other actions or damages pursuant to any applicable
Environmental Law and (ii) any and all claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Materials or arising from alleged
injury or threat of injury to health, safety to health, safety or the
environment.

                  "Environmental Laws" means any and all applicable Chilean
federal, provincial, municipal or local laws, rules, order, regulations,
statutes, ordinances, codes, decrees or requirements of any Chilean Governmental
Body, related to the environment, worker health and safety.

                  "Environmental Party" means the Borrower, and any Contractor
or any officer, director, employee or agent of either such party.

                  "Environmental Reports" means one or more reports prepared by
the Borrower (or a consulting firm on its behalf) related to environmental,
health or safety aspects of the Borrower's activities or assets or undertakings
to be executed by its Contractors for any applicable period including, without
limitation, the EHSM Plan, environmental impact assessments, environmental
management plans, safety management plans, emergency response or contingency
plans or similar studies.

                  "Environmental Requirements" means all environmental, social,
health and safety requirements, standards, protections, obligations and
performance required by (a) any Environmental Law, (b) any Governmental
Approval, (c) the IDB Environmental and Social Guidelines, (d) any Environmental
Reports, (e) any environmental, social, or health and safety representation and
warranty or affirmative covenant in this Agreement, and (f) any Fundamental
Principles and Rights at Work.

                  "Equity" means the sum, as at any date, for the Borrower
(determined in accordance with Canadian GAAP) of the following: (a) the amount
of cash equity invested in the Borrower, plus (b) the Subordinated Indebtedness
owing to SRT, plus (c) any in-kind investment, plus (d) any Indebtedness (other
than the Indebtedness created pursuant to this Agreement) of the Borrower
Guaranteed by SRT. plus (e) the Borrower's retained earnings less any retained
losses.

                  "Event of Default" has the meaning assigned to such term in
Section 9 to this Agreement.

                                Common Agreement

<PAGE>

                                      - 9 -

                  "Expansion Capital Expenditures" means those Capital
Expenditures required to expand the Project beyond the required specifications
for Completion of Network Construction pursuant to a plan in form and substance
satisfactory to the Senior Lenders.

                  "Financial Completion" has the meaning assigned to such term
in Section 8.20.

                  "Financial Officer" means the chief financial officer,
principal accounting officer, treasurer or controller of the Borrower.

                  "Financing Documents" means, collectively, this Agreement, the
Intercreditor Agreement, the IDB Notes, the IDB Loan Agreement, the EDC Notes,
the EDC Loan Agreement, the Custodian Agreements, the Project Account Agreement,
the Project Funds Agreement, the Transfer Restrictions Agreement, the
Performance Undertaking, the Direct Agreement, the Collection Account Agreements
and the Security Documents.

                  "First Pledge Without Conveyance on Chattel Property" means
the pledge dated as of April 13, 1999 regulated by Ley # 18, 112 of Chile on
chattel property owned by the Borrower created by the Borrower in favour of EDC.

                  "Free Cash Flow" means, for any period, the sum, for the
Borrower (determined in accordance with Canadian GAAP), of the following: (a)
EBITDA for such period less (b) Capital Expenditures (other than Expansion
Capital Expenditures) made during such period, less (c) taxes paid during such
period plus (d) decreases in non-cash working capital during such period less
increases in non-cash working capital during such period.

                  "Fundamental Principles and Rights at Work" include, without
limitation, (a) freedom of association and the effective recognition of the
right to collective bargaining; (b) prohibition of all forms of forced or
compulsory labor; (c) prohibition of child labor, including the prohibition of
children under 18 from working in hazardous conditions (which includes
construction activities) and young persons from working at night, and that young
persons under 18 be found fit to work via medical examinations; (d) elimination
of discrimination in respect of employment and occupation, where discrimination
is defined as any distinction, exclusion or preference based on race, color,
sex, religion, political opinion, national extraction, social origin, or any
other motive determined by any Governmental Body; (e) compliance with all
applicable labor laws, regulations, and standards; and (f) compliance with all
International Labor Organization conventions/treaties which have been accepted
by Chile.

                  "Governmental Approval" means any authorization, consent,
approval, license, ruling, permit, concession (including the Concessions),
certification, exemption, filing, variance, order, judgment, decree,
publication, notice to, declaration of or with or registration by or with (in
all cases other than with respect to the perfection of any security interest)
any Governmental Body.

                  "Governmental Body" means any national, state, county, city,
town, village, municipal or other local governmental department, commission,
board, bureau, agency, authority or instrumentality of Chile. Canada, or the
British Virgin Islands, or any political subdivision thereof, and any Person
(including, without limitation, the Central Bank of Chile) exercising

                                Common Agreement

<PAGE>

                                     - 10 -

executive, legislative, judicial, regulatory or administrative functions of or
pertaining to any of the foregoing entities, including, without limitation, all
commissions, boards, bureaus, arbitrators and arbitration panels, and any
authority or other Person controlled by any of the foregoing.

                  "Guarantee" means a guarantee, an endorsement, a contingent
agreement to purchase or to furnish funds for the payment or maintenance of, or
otherwise to be or become contingently liable under or with respect to, the
Indebtedness, other obligations, net worth, working capital or earnings of any
Person, or a guarantee of the payment of dividends or other distributions upon
the stock or equity interests of any Person, or an agreement to purchase, sell
or lease (as lessee or lessor) Property, products, materials, supplies or
services primarily for the purpose of enabling a debtor to make payment of such
debtor's obligations or an agreement to assure a creditor against loss, and
including, without limitation, causing a bank or other financial institution to
issue a letter of credit or other similar instrument for the benefit of another
Person, but excluding endorsements for collection or deposits in the ordinary
course of business. The terms "Guarantee" and "Guaranteed" used as verbs have
the correlative meanings.

                  "Hazardous Materials" means any hazardous or toxic substances,
materials or wastes defined, listed, classified or regulated as such in or under
any applicable Environmental Law, including, without limitation: (a) any
petroleum or petroleum products (including, without limitation, gasoline or
crude oil or any fraction thereof); (b) "radioactive materials;" (c) asbestos in
any form that is or could become friable; (d) urea formaldehyde foam insulation;
(e) fluids with polychlorinated biphenyl compounds; (f) lead-containing paint;
(g) any chemicals, materials or substances defined as or included in the
definition of "hazardous substances," "hazardous wastes," "hazardous materials,"
"extremely hazardous wastes," "restricted hazardous wastes," "toxic substances,"
"toxic pollutants," "contaminants" or "pollutants," or words of similar import,
under any applicable Environmental Law; and (h) any other chemical, material or
substance, exposure to or Release of which is prohibited, limited or regulated
by any Governmental Body.

                  "Hedging Agreement" means any interest rate protection
agreement, foreign currency exchange agreement, commodity price protection
agreement or other interest or currency exchange rate or commodity price hedging
arrangement.

                  "IDB" has the meaning assigned to such term in the Preamble of
this Agreement.

                  "IDB Accrual Account" has the meaning assigned to such term in
Section 4.0l(a)(ii).

                  "IDB Commitment" has the meaning assigned to the term
"Commitment" in the IDB Loan Agreement.

                  "IDB Custodian Agreement" means the Custodian Agreement, to be
executed and delivered in form and substance satisfactory to the Senior Lenders
on or prior to the Closing Date, among the Borrower. IDB and the Custodian.

                  "IDB Environmental and Social Guidelines" means the applicable
environmental and social IDB policies and guidelines, including, without
limitation, guidance on environmental impact assessments, resettlement policy
and disclosure of information policy.

                                Common Agreement

<PAGE>

                                     - 11 -

                  "IDB Loan" means the loan made by IDB to the Borrower pursuant
to Section 2.01 of the IDB Loan Agreement.

                  "IDB Loan Agreement" means the Loan Agreement dated as of the
date hereof between the Borrower and IDB.

                  "IDB Members" has the meaning assigned to such term in Section
8.13(b)(ii).

                  "IDB Notes" means any promissory note delivered by the
Borrower to IDB in connection with the IDB Loan Agreement.

                  "Indebtedness" means, for any Person: (a) obligations created,
issued or incurred by such Person for borrowed money (whether by loan, the
issuance and sale of debt securities or the sale of Property to another Person
subject to an understanding or agreement, contingent or otherwise, to repurchase
such Property from such Person); (b) obligations of such Person to pay the
deferred purchase or acquisition price of Property or services, other than trade
accounts payable (other than for borrowed money) arising, and accrued expenses
incurred, in the ordinary course of business so long as such trade accounts
payable are payable within 90 days of the date the respective goods are
delivered or the respective services are rendered; (c) Indebtedness of others
secured by a Lien on the Property of such Person, whether or not the respective
indebtedness so secured has been assumed by such Person; (d) obligations of such
Person in respect of letters of credit or similar instruments issued or accepted
by banks and other financial institutions for account of such Person; (e)
Capital Lease Obligations or operating lease obligations of such Person; and (f)
Indebtedness of others Guaranteed by such Person.

                  "Independent Accountants" means Deloitte & Touche Sociedad de
Auditores y Consultores Limitada or other independent certified public
accountants of recognized national standing and acceptable to the Senior
Lenders.

                  "Independent Engineer" means Ingenieros y Economistas
Consultores Ltda. of Santiago, Chile or such other Person appointed by the
Senior Lenders from time to time with the consent of the Borrower, which consent
shall not be unreasonably withheld.

                  "Independent Insurance Advisor" means AON Risk Services, Inc.
or such other insurance consultant as the Senior Lenders may engage from time to
time.

                  "Initial Equity Investment" means SRT's equity investment in
the Borrower in an aggregate amount not less than $52,000,000. in the form of
any combination of the following: cash equity, Intercompany Loans, in-kind
investment.

                  "Intercompany Loans" means any loan made by SRT to the
Borrower, together with any intercompany receivables between the Borrower and
SRT relating to the Borrower's purchase of equipment or services for the
Project.

                  "Interconnection Agreements" means, collectively, (a) the
ENTEL Interconnection Agreement (Long Distance), (b) the Telsur Interconnection
Agreement, (c) the CTC Interconnection Agreement, and (d) any other
interconnection agreements entered into after

                                Common Agreement

<PAGE>

                                     - 12 -

the date hereof between the Borrower and any other telephone services operator
in Chile, in form and substance satisfactory to the Senior Lenders.

                  "Intercreditor Agreement" means the Intercreditor Agreement to
be executed and delivered in form and substance satisfactory to the Senior
Lenders on or prior to the Closing Date between EDC and IDB.

                  "Interest Expense" means, for any period, the sum, for the
Borrower (determined in accordance with Canadian GAAP), of the following: (a)
all interest in respect of Indebtedness (including, without limitation, the
interest component of any payments in respect of Capital Lease Obligations)
accrued or capitalized during such period (whether or not actually paid during
such period) plus (b) the net amount payable (or minus the net amount
receivable) under Hedging Agreements relating to interest during such period
(whether or not actually paid or received during such period).

                  "Interest Payment Date" means November 15th and May 15th of
each calendar year occurring during the term of this Agreement; or, if any such
date is not a Business Day, the succeeding Business Day.

                  "Investment" means, for any Person: (a) the acquisition
(whether for cash, Property, services or securities or otherwise) of capital
stock, bonds, notes, debentures, Joint Venture, partnership or other ownership
interests or other securities of any other Person or any agreement to make any
such acquisition (including, without limitation, any "short sale" or any sale of
any securities at a time when such securities are not owned by the Person
entering into such sale); (b) the making of any deposit with, or advance, loan
or other extension of credit to, any other Person (including the purchase of
Property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such Property to such Person), but excluding
any such advance, loan or extension of credit having a term not exceeding 90
days arising in connection with the sale of inventory or supplies by such Person
in the ordinary course of business; (c) the entering into of any Guarantee of,
or other contingent obligations with respect to, Indebtedness or other liability
of any other Person and (without duplication) any amount committed to be
advanced, lent or extended to such Person; or (d) the entering into of any
Hedging Agreement.

                  "Joint Venture" means (a) the ownership of any capital stock
of any Person, other than by virtue of an ownership interest in a Subsidiary, or
(b) any other type of interest (whether ownership or otherwise) in any Person,
including without limitation, any partnership, joint venture, profit sharing or
royalty agreement or similar arrangement whereby income or profits are, or may
be, shared with any Person.

                  "Lien" means, with respect to any Property, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind in respect of
such Property. For purposes of this Agreement and the other Financing Documents,
a Person shall be deemed to own subject to a Lien any Property that it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
(other than an operating lease) relating to such Property.

                                Common Agreement

<PAGE>

                                     - 13 -

                  "London Business Day" means any day on which dealings on
Dollar deposits are conducted in the London interbank market.

                  "Long-Term Debt" means, as of any date of determination, the
aggregate of all those components of Indebtedness which fall due or whose final
payment is due more than one year after such date of determination.

                  "Maintenance Costs" means, for any period, expenditures made,
or projected to be made, by the Borrower to be paid or payable during such
period to maintain or replace existing fixed assets, plant and equipment in
accordance with Canadian GAAP, which expenditures are for the purpose of
maintenance, renewals, replacements and repairs of all or part of the Project in
a manner consistent with the Agreed Financial Model and are not for the purpose
of expanding or enhancing the capacity of the Project or the performance thereof
or otherwise for improvements or new operations.

                  "New York Business Day" means any date on which commercial
banks are not authorized or required to close in New York City.

                  "Network Assets" means all assets of the Borrower used in the
Borrower's business of providing telecommunications services.

                  "Notes" means collectively, the IDB Notes and the EDC Notes.

                  "Obligations" means all obligations of the Borrower now
existing or hereinafter arising, direct or indirect, absolute or contingent, due
or to become due, under the Financing Documents, including (without duplication)
(a) the principal and interest on the Senior Loans and all other obligations,
advances, debts and liabilities of the Borrower, including indemnities, fees and
interest incurred under, arising out of or in connection with the Senior Loans
or any other Financing Document; (b) any and all sums advanced by any Senior
Lender in order to preserve the security interests created pursuant to the
Security Documents; and (c) in the event of any proceeding for the collection or
enforcement of the Obligations, after an Event of Default shall have occurred
and be continuing and unwaived, the expense of retaking, holding, preparing for
sale or lease, selling or otherwise disposing of or realizing on any Collateral,
or of any exercise by any Senior Lender, of its rights under the Security
Documents, together with reasonable attorney's and experts' fees and expenses
and court costs.

                  "Operating Account" has the meaning assigned to such term in
Section 4.01(b)(i) of this Agreement.

                  "Operating Contracts" means, collectively, any agreements
relating to the operation of the Project entered into between the Borrower and
another Person.

                  "Operating Costs" means, for any period, the sum, computed
without duplication, of all costs and expenses paid by the Borrower during such
period (or in the case of any future period, projected by the Borrower to be
paid or payable during such period) in connection with the operation,
maintenance and administration of the Project, and including, without limiting
the generality of the foregoing, (a) costs of operating and administering the
Project and of maintaining it in good repair and operating condition (including,
without limitation, all

                                Common Agreement

<PAGE>

                                     - 14 -

Maintenance Costs and amounts due and payable under the Technical Services
Agreement that are permitted to be paid under this Agreement), (b) costs of
payroll, utilities, supplies and other services acquired in connection with the
operation and maintenance of the Project, (c) costs of insurance, (d) costs of
shipping and transporting, (e) costs and fees attendant to the obtaining and
maintaining in effect the Governmental Approvals relating to the Project and (f)
legal, accounting and other professional fees attendant to any of the foregoing;
provided that all of the foregoing costs and expenses shall be determined on a
cash basis and shall not include depreciation, amortization and other non-cash
items.

                  "Payment Dates" means, collectively, any Principal Payment
Dates or any Interest Payment Dates.

                  "Payroll Account" has the meaning assigned to such term in
Section 4.01(b)(iii).

                  "Performance Undertaking" means the Amended and Restated
Performance Undertaking dated as of the date hereof between SRT and the Senior
Lenders.

                  "Permitted Indebtedness" has the meaning assigned to such term
in Section 8.07.

                  "Permitted Investments" means, collectively:

                  (a) all financial instruments and investments that comply with
         all of the following:

                           (i) fixed income; and

                           (ii) issued by: (A) the Central Bank of Chile, (B)
                  the Tesoreria General de la Republica, (C) Canada or the
                  United States or any agency thereof as a direct obligation, or
                  obligations guaranteed by Canada or the United States or any
                  agency thereof; or (D) financial institutions and companies
                  (other than SRT or any company affiliated, by way of
                  ownership, with SRT or the Borrower) having a rating, as
                  reported to the Superintendencia de Valores y Seguros, in the
                  two highest rating categories as existing at the time of the
                  Closing Date and from time to time or a rating equivalent
                  thereto; and

                  (b) any repurchase agreement in respect of any of the
         instruments referred to in clause (a) of this definition; and

                  (c) time deposits in commercial banks acceptable to the Senior
         Lenders and short-term marketable securities, acquired solely to give
         temporary employment to the Borrower's idle resources;

provided, in each case, that such Permitted Investment matures within one year
from the date of acquisition thereof by the Borrower.

                  "Permitted Liens" has the meaning assigned to such term in
Section 8.06(a).

                                Common Agreement

<PAGE>

                                     - 15 -

                  "Person" means any individual, corporation, company, voluntary
association, partnership, limited liability company, joint venture, trust,
unincorporated organization or government (or any agency, instrumentality or
political subdivision thereof).

                  "Pledges Without Conveyance on Chattel Property" means,
collectively, the First Pledge Without Conveyance on Chattel Property, the
Second Pledge Without Conveyance on Chattel Property and the Senior Lenders'
Pledge Without Conveyance on Chattel Property.

                  "Principal Payment Date" means each May 15th and November 15th
of each calendar year, commencing on May 15, 2001 and continuing thereafter
until (a) with respect to the EDC Loans, the earlier of (i) November 15, 2007
and (ii) the date on which all Obligations owing to EDC have been paid in full
and (b) with respect to the IDB Loan the earlier of (i) November 15, 2008 and
(ii) the date on which all Obligations owing to IDB have been paid in full; or
if any such date is not a Business Day, the succeeding Business Day.

                  "Process Agent" has the meaning assigned to such term in
Section 10.08(c).

                  "Process Agent Acceptance" means a letter from the Process
Agent addressed to each Senior Lender substantially in the form of Exhibit E.

                  "Project" means the design, construction, installation and
operation of a rural telecommunications network in nine primary zones of Chile
as more specifically described in the Agreed Financial Model and Business Plan.

                  "Project Account Agreement" means the Project Account
Agreement, to be executed and delivered in form and substance satisfactory to
the Senior Lenders on or prior to the Closing Date, among the Borrower, the
Senior Lenders and the Account Bank, which regulates (a) the opening, operation
and maintenance of the Accounts and the use of the funds deposited therein; and
(b) certain aspects of the operation of the Borrower Accounts.

                  "Project Costs" means all costs and expenses (excluding
Expansion Capital Expenditures), incurred or anticipated to be incurred by the
Borrower to finance, develop, construct and complete the Project and achieve
Completion of Network Construction, including, without limitation, all costs and
expenses incurred in connection with the design, equipment procurement,
installation, construction and start-up of the Project in a manner consistent
with the Agreed Financial Model, the grant to the Borrower of all easements,
licenses and other real property rights and interests required for the Project.
Interest Expense during construction and other fees and costs (including in
connection with the Closing Date).

                  "Project Documents" means, collectively, the Concessions, the
Interconnection Agreements, the Tariff Agreements, the Technical Services
Agreement, the Operating Contracts, the Service Contracts, the Agreed Financial
Model, the Business Plan, the SUBTEL Letter, and every other contract or
agreement entered into by, or on behalf of the Borrower and any other Person in
effect on the date hereof or entered into after the date hereof relating to the
Project.

                  "Project Funds Agreement" means the Amended and Restated
Project Funds Agreement dated as of the date hereof among SRT. the Borrower and
the Senior Lenders.

                                Common Agreement

<PAGE>

                                     - 16 -

                  "Promise to Execute Conditional Assignment of Rights" means
the Borrower's agreement, to be executed and delivered in form and substance
satisfactory to the Senior Lenders on or prior to the Closing Date, to execute
conditional assignments of the Borrower's rights and obligations under any
relevant Project Document governed by the laws of Chile created by the Borrower
in favour of the Senior Lenders.

                  "Promise to Grant a Commercial Pledge on Concessions of
Telecommunications" means the Borrower's agreement, to be executed and delivered
in form and substance satisfactory to the Senior Lenders on or prior to the
Closing Date, to create a pledge regulated by articles 813 and following of the
Commerce Code of Chile on the concessions of telecommunications granted to the
Borrower after the date hereof, created by the Borrower in favour of the Senior
Lenders.

                  "Promise to Grant a Pledge Without Conveyance on Chattel
Property" means the Borrower's agreement, to be executed and delivered in form
and substance satisfactory to the Senior Lenders on or prior to the Closing
Date, to create a pledge regulated by Ley # 18, 112 of Chile on chattel property
to be owned by the Borrower after the date hereof, created by the Borrower in
favour of the Senior Lenders.

                  "Property" means any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible.

                  "Quarterly Dates" means the last day of March, June, September
and December in each year, the first of which shall be the first such day after
the date hereof.

                  "Receivables Turnover" means, as at any date, the ratio of (a)
Total Revenues plus applicable value added tax ("IVA") and long distance charges
(collected on behalf of the various long distance carriers) for the period of
four consecutive fiscal quarters ending on or most recently ended prior to such
date to (b) the quotient of the sum of the ending balance of accounts receivable
(as defined pursuant to Canadian GAAP) for each of the preceding four
consecutive fiscal quarters divided by four.

                  "Recurring Revenues" means the sum, converted from Chilean
Pesos to Dollars using the average of the closing rates of exchange, as quoted
by Bloomberg under the website found at the following internet address
"www.bloomberg.com/welcome.html" or if such rate is not available from such
source, the rate notified to the Borrower by the Senior Lenders, on the last day
of the prior quarterly fiscal period and the last day of the current quarterly
fiscal period, (determined in accordance with Canadian GAAP) of the following:
(a) usage revenues for such period, plus (b) monthly subscription revenues for
such period.

                  "Release" means the release or disposal (accidental or
otherwise) of any Hazardous Material into or upon or under any land or water or
air, or otherwise into the environment, including, without limitation, by means
of burial, discharge, emission, injection, spillage, leakage, seepage, leaching,
dumping, pumping, pouring, escaping, emptying, placement and the like.

                  "Restricted Payment" means dividends (in cash, Property or
obligations) on, or other payments or distributions on account of. or the
setting apart of money for a sinking or other

                                Common Agreement

<PAGE>

                                     - 17 -

analogous fund for, or the purchase, redemption, retirement or other acquisition
of, any shares of any class of stock of the Borrower or of any warrants, options
or other rights to acquire the same (or to make any payments to any Person, such
as "phantom stock" payments, where the amount thereof is calculated with
reference to the fair market or equity value of the Borrower), but excluding
dividends payable solely in shares of common stock of the Borrower.

                  "Second Pledge Without Conveyance on Chattel Property" means
the pledge, to be executed and delivered in form and substance satisfactory to
the Senior Lenders on or prior to the Closing Date, regulated by Ley # 18, 112
of Chile on chattel property owned by the Borrower created by the Borrower in
favour of IDB.

                  "Security Documents" means, collectively, the SR (BV) Holdings
Pledge Agreement, each Chilean Security Document and all filings required by the
Security Documents to be filed in Chile, the British Virgin Islands or Canada
with respect to the security interests in Property created pursuant to the
Security Documents.

                  "Senior Lenders" means, collectively, EDC and IDB.

                  "Senior Lenders' Pledge Without Conveyance on Chattel
Property" means the pledge, to be executed and delivered in form and substance
satisfactory to the Senior Lenders on or prior to the Closing Date, regulated by
Ley # 18, 112 of Chile on chattel property owned by the Borrower created by the
Borrower in favour of IDB and EDC.

                  "Senior Loan Agreements" means, collectively, the EDC Loan
Agreement and the IDB Loan Agreement.

                  "Senior Loans" means, collectively, the IDB Loan and the EDC
Loans.

                  "Senior Notes" means, collectively, the EDC Notes and the IDB
Notes.

                  "Service Contracts" means, collectively, any agreement
providing for certain installation and maintenance services entered into between
the Borrower and any Person.

                  "Shareholders Pledge Agreements" means, collectively, (a) that
certain Pledge of Shares dated as of April 13, 1999, created by Chilean Holdco
in favour of EDC, (b) that certain Pledge of Shares dated as of April 13, 1999,
created by BVI Holdco in favour of EDC and (c) that certain Pledge of Shares, to
be executed and delivered in form and substance satisfactory to the Senior
Lenders on or prior to the Closing Date, created by Chilean Holdco in favour of
IDB, in each case, in the capital stock of the Borrower and regulated by
articles 813 and following of the Commerce Code of Chile.

                  "SR (BV) Holdings" means SR (BV) Holdings Limited, a limited
liability company duly organized and validly existing under the laws of the
British Virgin Islands.

                  "SR (BV) Holdings Pledge Agreement" means the share pledge
agreement, to be executed and delivered in form and substance satisfactory to
the Senior Lenders on or prior to the Closing Date, created by SR (BV) Holdings
in favour of the Senior Lenders in the capital stock of BVI Holdco.

                                Common Agreement

<PAGE>

                                     - 18 -

                  "SRT" means SR Telecom Inc., a corporation duly organized and
validly existing under the laws of Canada.

                  "SRT Conditional Assignment" means the Conditional Assignment
of Rights (Technical Services Agreement), to be executed and delivered in form
and substance satisfactory to the Senior Lenders on or prior to the Closing
Date, among SRT, the Borrower and the Senior Lenders.

                  "SRT Material Adverse Effect" means a material adverse effect
on (a) the Property, business, operations, financial condition, liabilities or
capitalization of SRT or (b) the ability of SRT to perform its obligations under
any of the Transaction Documents to which it is a party.

                  "Subordinated Indebtedness" means, collectively, all
Intercompany Loans (but in any event not including payments under the Technical
Services Agreement that are permitted under the Direct Agreement or the payment
of Project Costs owing to SRT which are permitted under Section 8.13(a)(ii)) and
any other Indebtedness (a) for which the Borrower is directly and primarily
liable and (b) that is unsecured and subordinated to the obligations of the
Borrower to pay principal of and interest on the Senior Loans and the Senior
Notes on terms and conditions substantially in the form of Exhibit C.

                  "Subsidiary" means, with respect to any Person, any
corporation, limited liability company, partnership or other entity of which at
least a majority of the securities or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions of such corporation,
limited liability company, partnership or other entity (irrespective of whether
or not at the time securities or other ownership interests of any other class or
classes of such corporation, limited liability company, partnership or other
entity shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or
more Subsidiaries of such Person.

                  "SUBTEL" means Subsecretaria de Telecomunicaciones, an agency
of the Chilean government.

                  "SUBTEL Letter" means the letter dated as of March 23, 1999
from SUBTEL addressed to the Borrower and identified as ORD No. 32092.

                  "Surplus Cash" has the meaning assigned to such term in clause
"tenth" of Section 4.03(b).

                  "Tariff Agreements" means, collectively, any tariff agreements
entered into after the date hereof between the Borrower and any telephone
services operator in Chile, in form and substance satisfactory to the Senior
Lenders.

                  "Technical Services Agreement" means the Procurement of
Service Agreement dated as of March 31 1999 between SRT and the Borrower.

                                Common Agreement

<PAGE>

                                     - 19 -

                  "Telrad" means Telrad, Telecommunication and Electronic
Industries Ltd., a limited liability company duly organized and validly existing
under the laws of Israel.

                  "Telsur" means Compania Nacional de Telefonos, Telefonica del
Sur S.A., a sociedad anonima duly organized and validly existing under the laws
of Chile.

                  "Telsur Conditional Assignment" means the Conditional
Assignment of Rights (Telsur Interconnection Agreement), to be executed and
delivered in form and substance satisfactory to the Senior Lenders on or prior
to the Closing Date, among Telsur, the Borrower and the Senior Lenders.

                  "Telsur Interconnection Agreement" means the Interconnection
Agreement dated as of July 13, 1998 between Telsur and the Borrower.

                  "Total Debt" means, as at any date, the sum, for the Borrower
(determined in accordance with Canadian GAAP), of the following: (a) all
Indebtedness of the Borrower, less (b) any Indebtedness (other than Indebtedness
created pursuant to this Agreement) of the Borrower Guaranteed by SRT, less (c)
any Indebtedness of the Borrower owing to any shareholder of the Borrower.

                  "Total Revenues" means the sum, for any period, for the
Borrower (determined in accordance with Canadian GAAP) of the following: (a)
from usage revenues for such period, plus (b) carrier access revenues for such
period, plus (c) installation revenues for such period, plus (d) monthly
subscription revenues for such period.

                  "Transaction Documents" means, collectively, the Financing
Documents and the Project Documents.

                  "Transaction Parties" means, collectively, the Borrower, SRT,
SR (BV) Holdings, BVI Holdco and Chilean Holdco.

                  "Transfer Restrictions Agreement" means the Amended and
Restated Transfer Restrictions Agreement dated as of the date hereof among SRT,
SR (BV) Holdings, BVI Holdco, Chilean Holdco and the Senior Lenders.

                  "Trust Indenture" means the Trust Indenture dated as of April
22, 1998 between SRT and Montreal Trust Company, a trust company incorporated
under the laws of Canada pursuant to which a principal amount of Canadian
$75,000,000 of debentures were issued bearing interest at 8.15% with a due date
of April 22, 2005.

                  "Year 2000 Compliance" of an entity means that all computer
systems and programs (including but not limited to any technology reliant on an
embedded computer chip) of such entity material to such entity's business and
operations are (a) designed to be used prior to, during and after the calendar
year 2000 AD without error; (b) capable of operating without error relating to
the production of date data which represents or refers to different centuries or
more than one century; (c) designed so that all date data fields, date data
storage, date-related user interfaces, and other interfaces include an
unambiguous explicit or implicit (derived by algorithm

                                Common Agreement

<PAGE>

                                     - 20 -

or inferencing) indication of century; and (d) shall recognize that the calendar
year 2000 AD is a leap year, and "Year 2000 Compliant" shall have a
corresponding meaning.

                  1.02 Principles of Construction. In this Agreement and the
other Financing Documents and the appendices, exhibits and schedules hereto or
thereto:

                  (a) The meanings set forth for defined terms in Section 1.01
         or in any Financing Document shall be equally applicable to both the
         singular and plural forms of the terms defined and the masculine,
         feminine or neutral gender shall include all genders.

                  (b) All references in any Financing Document to clauses,
         sections, appendices, schedules and exhibits are to clauses, sections,
         appendices, schedules and exhibits in or to such Financing Document
         unless otherwise specified therein.

                  (c) The words "hereof", "herein" and "hereunder" and words of
         similar import when used in a Financing Document shall refer to such
         Financing Document as a whole and not to any particular provision of
         such Financing Document.

                  (d) References in any Financing Document to any statute, law,
         decree or regulation shall be construed as a reference to such statute,
         law, decree or regulation as re-enacted, redesignated, amended or
         extended from time to time, except as otherwise provided in such
         Financing Document.

                  (e) References in any Financing Document to any Transaction
         Document or any other document or agreement shall be deemed to include
         references to such Transaction Document or such other document or
         agreement as amended, varied, supplemented or replaced from time to
         time in accordance with the terms of such Transaction Document,
         document or agreement and this Agreement and to include any appendices,
         schedules, exhibits, supplements, clarification letters, side letters
         and disclosure letters executed in connection therewith.

                  (f) References to any Person or Persons shall be construed as
         a reference to any successors or assigns of such Person or Persons to
         the extent permitted under the Financing Documents and, in the case of
         any Governmental Body, any Person succeeding to its functions and
         capacities.

                  (g) The table of contents and the headings of the several
         sections and subsections of this Agreement or any Financing Document
         are intended for convenience only and shall not in any way affect the
         meaning or construction of any provision therein.

                  (h) References to the words "include" or "including" shall be
         deemed to be followed by "without limitation" or "but nut limited to",
         whether or not they are followed by such phrases or words of similar
         import.

                  (i) References to a number of days shall refer to calendar
         days unless Business Days are otherwise specified.

                                Common Agreement

<PAGE>

                                     - 21 -

                  1.03 Accounting Terms and Determinations. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and
all financial statements and certificates and reports as to financial matters
required to be furnished to the Senior Lenders hereunder shall be prepared, in
accordance with Canadian GAAP and Chilean GAAP, applied on a basis consistent
with that used in the Agreed Financial Model (in the case of Canadian GAAP) and
in the audited financial statements of the Borrower referred to in Section 7.05
(except for changes concurred with by the Borrower's independent public
accountants) and shall include certified data on appropriate Dollar exchange
rates applicable to the financial information provided. To enable the ready and
consistent determination of compliance with the covenants set forth in Section
8, the Borrower will not change the last day of its fiscal year from December
31, or the last days of the first three fiscal quarters in each of its fiscal
years from March 31, June 30 and September 30, respectively.

                  1.04 Conflicts. In the case of any conflict between the terms
of this Agreement and the terms of any Senior Loan Agreement, the terms of such
Senior Loan Agreement, as between the Company and the Senior Lender party
thereto, shall control. In the case of any conflict between the terms of the
Intercreditor Agreement and any other Financing Document, the terms of the
Intercreditor Agreement, as between the Senior Lenders, shall control. In the
case of any conflict between the terms of this Agreement and any other Financing
Document (other than the Intercreditor Agreement and the Senior Loan
Agreements), the terms of this Agreement shall control.

                  Section 2. Senior Loan Agreements.

                  2.01 Indebtedness Subject to this Agreement. All Senior Loans
shall be entitled to the benefits of and subject to the obligations set forth in
this Agreement and the security interests granted by or pursuant to the Security
Documents.

                  2.02 Senior Loans Pari Passu. All Senior Loans shall rank pari
passu without any preference among the Senior Loans or the Senior Loan
Agreements by reason of date of incurrence or otherwise.

                  2.03 Pro Rata Payment of Obligations. Each scheduled payment
in accordance with Section 2.07, in respect of the Obligations by the Borrower
to the Senior Lenders on a Payment Date, shall be on a pro rota payment basis in
accordance with the respective Obligations due to the Senior Lenders on such
Payment Date.

                  2.04 Non-Pro Rata Prepayment. The Borrower may prepay in whole
or in part the Obligations owed to one or more Senior Lenders without making a
pro rota payment to any other Senior Lender if:

                  (a) such prepayment is made to EDC. in an amount equal to the
         aggregate outstanding amount of the EDC Loans in excess of $25,000,000
         from the proceeds of the initial disbursement of the IDB Loan:

                  (b) such Senior Lender would be entitled to or has received
         compensation from the Borrower pursuant to Section 5 of the EDC Loan
         Agreement or pursuant to Section 5

                                Common Agreement

<PAGE>

                                     - 22 -

         of the IDB Loan Agreement, as the case may be, for costs incurred by
         such Senior Lender in connection with making or maintaining its Senior
         Loans in excess of costs incurred generally by any other Senior Lender
         in connection with the Senior Loans; or

                  (c) such prepayment is made to a Senior Lender because it has
         become unlawful for such Senior Lender to honor its obligations to make
         or maintain its Senior Loans under its Senior Loan Agreement.

                  2.05 Optional Prepayments.

                  (a) The Borrower shall have the right to prepay the Senior
Loans at any time or from time to time, provided that:

                  (i) the Borrower has obtained the specific prior approval of
         the Central Bank of Chile with respect to such prepayment and with
         respect to the fee referred to in clause (vi) of this Section 2.05(a);

                  (ii) the Borrower shall give each Senior Lender notice of each
         such prepayment as provided in Section 4.04 of the IDB Loan Agreement
         and in Section 4.04 of the EDC Loan Agreement (and, upon the date
         specified in any such notice of prepayment, the amount to be prepaid
         shall become due and payable thereunder);

                  (iii) Senior Loans may be prepaid only on an Interest Payment
         Date occurring after the first Principal Payment Date;

                  (iv) one-half of the amount of the prepayment shall be made
         available to each Senior Lender and, once paid to such Senior Lender,
         shall be applied in accordance with Section 4.01(b) of the Senior Loan
         Agreement to which such Senior Lender is a party;

                  (v) amounts prepaid under this Section 2.05 may not be
         reborrowed;

                  (vi) in addition to any break-funding costs payable to either
         or both of the Senior Lenders incurred in connection with such
         prepayment, the Borrower shall pay to IDB a fee for any prepayment made
         pursuant to this Section 2.05 prior to the eighth Principal Payment
         Date in an amount equal to (A) 2.0% of the amount of the IDB Loan
         prepaid during the period commencing on the first Principal Payment
         Date to but excluding the fourth Principal Payment Date or (B) 1.0% of
         the amount of the IDB Loan prepaid during the period commencing on the
         fourth Principal Payment Date to but excluding the eighth Principal
         Payment Date; and

                  (vii) each partial prepayment under this Section 2.05 shall be
         in an amount equal to $2,000,000 and, if greater, in incremental
         multiples of $1,000,000.

                  (b) Notwithstanding clauses (ii) and (iii) of Section 2.05(a),
in the event that the Borrower desires to prepay Senior Loans without providing
the notice required pursuant to Section 2.05(a)(ii) or on any day which is not
an Interest Payment Date occurring after the first Principal Date as required in
Section 2.05(a)(iii). then the Borrower's right to prepay any Senior Loans is
subject to (i) the payment by the Borrower to each Senior Lender of an
additional fee in

                                Common Agreement

<PAGE>

                                     - 23 -

an amount equal to the amount of interest which would have accrued on the amount
of principal to be so prepaid during the immediately succeeding 60 days, and
(ii) the Borrower's compliance with clauses (i), (iv), (v), (vi) and (vii) of
Section 2.05(a).

                  2.06 Mandatory Prepayments.

                  (a) Cash Sweep Account. On each Interest Payment Date
occurring after Financial Completion on which the collected credit balance of
the Cash Sweep Account is equal to or greater than $2,000,000, the Borrower
shall prepay (using the amounts in the Cash Sweep Account) the Senior Loans in
an aggregate amount equal to such collected credit balance.

                  (b) Prepayment of Other Indebtedness. On any date on which the
Borrower prepays any Long-Term Debt in an amount greater than $100,000, the
Borrower shall prepay the Senior Loans, in an aggregate amount equal to the
amount of Long-Term Debt so prepaid or in such other amount requested by the
Borrower and acceptable to the Senior Lenders.

                  (c) Termination Payment. Upon the Borrower's receipt of any
payment from SUBTEL or on SUBTEL's behalf relating to a termination of any
Concession, the Borrower shall prepay the aggregate outstanding amount of the
Obligations in an amount equal to the amount of such payment.

                  (d) Financial Completion. If the Borrower has failed to
demonstrate by January 31, 2003, that Financial Completion had occurred by
December 31, 2002 in accordance with Section 8.20, then on January 31, 2003, but
after taking the action described in Section 4.06(b)(ii), the Borrower shall
prepay the Senior Loans in an amount equal to the amount received by the
Borrower from SRT pursuant to Section 2.01(a)(v) of the Project Funds Agreement.

                  (e) Prepayment Fee. In addition to any break-funding costs
payable to either or both of the Senior Lenders incurred in connection with such
prepayment, the Borrower shall pay to IDB a fee for any prepayment made pursuant
to clause (b) of this Section 2.06 prior to the eighth Principal Payment Date in
an amount equal lo (i) 2.0% of the amount of the IDB Loan prepaid during the
period commencing on the first Principal Payment Date to but excluding the
fourth Principal Payment Date or (ii) 1.0% of the amount of the IDB Loan prepaid
during the period commencing on the fourth Principal Payment Date to but
excluding the eighth Principal Payment Date.

                  (f) Application. Prepayments described in (i) paragraphs (b)
and (d) of this Section 2.06 shall be made to each Senior Lender so that each
Senior Lender receives 50% of the amount prepaid and (ii) paragraphs (a) and (c)
shall be made to each Senior Lender pro rata to the aggregate outstanding
Obligations then owing to each Senior Lender and, in each case, once paid to
each Senior Lender, applied in accordance with Section 4.01(b) of each Senior
Loan Agreement: provided, however, that any amount prepaid pursuant to Section
2.06(d) shall be applied pro rata to the remaining principal installments to be
paid in accordance with Section 3.01 of each Senior Loan Agreement. Amounts
prepaid under this Section 2.06 may not be reborrowed. Prepayment is permitted
only upon payment of all accrued interest and other amounts then payable.

                                Common Agreement

<PAGE>

                                     - 24 -

                  2.07 Payments.

                  (a) On each Principal Payment Date, the Borrower shall make
the scheduled principal payments of Senior Loans, if any, due on such Principal
Payment Date except to the extent that such payments have been prepaid.
Principal of the Senior Loans shall be payable in accordance with the terms and
conditions set forth in the applicable Senior Loan Agreement.

                  (b) On each Interest Payment Date, the Borrower shall pay
accrued and unpaid interest on the unpaid principal amount of the Senior Loans
outstanding under each Senior Loan Agreement, and any commitment fees under each
Senior Loan Agreement, in each case in accordance with the terms of the
applicable Senior Loan Agreement.

                  Section 3. Reserved.

                  Section 4. Accounts.

                  4.01 Creation of the Accounts and the Borrower Accounts.

                  (a) Pursuant to, and in accordance with, the Project Account
Agreement, concurrently with or prior to the Closing Date, the Senior Lenders
and the Borrower will cause to be established and maintained with the Account
Bank the following segregated, Dollar denominated accounts at the office of the
Account Bank located in Santiago, Chile (collectively, the "Accounts"):

                  (i) an account into which an amount equal to 1/6 of the amount
         of Debt Service owing to EDC on the next Payment Date is deposited by
         the Borrower on a monthly basis (the "EDC Accrual Account");

                  (ii) an account into which an amount equal to 1/6 of the
         amount of Debt Service owing to IDB on the next Payment Date is
         deposited by the Borrower on a monthly basis (the "IDB Accrual
         Account");

                  (iii) an account, the aggregate outstanding balance of which,
         will at all times subsequent to Financial Completion be equal to the
         Debt Service Reserve Requirement (the "Debt Service Reserve Account");
         and

                  (iv) an account into which, inter alia, Surplus Cash is to be
         deposited (the "Cash Sweep Account").

                  (b) Prior to the date hereof, the Borrower has established in
its name and will maintain the following Chilean Peso denominated accounts
(collectively, the "Borrower Accounts"):

                  (i) an operating account established at the office of Banco
         Sud Americano, a banking institution located in Santiago. Chile (the
         "Operating Account");

                                Common Agreement

<PAGE>

                                     - 25 -

                  (ii) the collection accounts (the "Collection Accounts")
         opened and maintained with (A) Banco BHIF, a banking institution with
         branches throughout Chile and (B) Banco del Estado, a banking
         institution located in Temuco, Chile; and

                  (iii) the payroll account opened and maintained with Banco
         Santiago, a banking institution located in Santiago, Chile (the
         "Payroll Account").

                  4.02 Limited Borrower Rights. The Borrower irrevocably agrees
to deposit into and remit funds from the Accounts in accordance with this
Agreement, the Project Account Agreement and the other Financing Documents.
With respect to the Payroll Account and Collection Accounts, the Borrower
agrees to deposit and remit funds to and from these Borrower Accounts in
accordance with its current practice.

                  4.03 Operating Account.

                  (a) Deposits into Operating Account. The Borrower agrees and
confirms that it has irrevocably instructed:

                  (i) each party to a Project Document in effect as of the date
         hereof (and shall instruct each party to a Project Document entered
         into after the date hereof) to direct any payments, including without
         limitation, the payment of any liquidated damages, owing to the
         Borrower under any Project Document to the Operating Account;

                  (ii) Banco BHIF and Banco del Estado (in their capacities as
         account banks for the Collection Accounts) to transfer, on each
         Business Day, to the Operating Account the collected credit balances of
         the Collection Accounts in accordance with the Collection Account
         Agreements; and

                  (iii) each other Person from whom the Borrower is entitled to
         receive payments of any kind not otherwise referred in the preceding
         clauses (i) and (ii), to direct any such payments to the Operating
         Account.

If, notwithstanding such instructions, the Borrower should receive any such
payment, the Borrower shall promptly deposit such payment into the Operating
Account in the exact form received with any necessary endorsement.

                  (b) Transfers from Operating Account Prior to an Event of
Default. Unless an Event of Default shall have occurred and be continuing or
would result therefrom, the Borrower shall transfer (or cause to be
transferred), from the collected credit balance of the Operating Account, the
following amounts, subject in some cases to Section 4.10, in the following order
of priority (and no transfer at any such priority level shall be made on any day
if any transfer remains to be made on such day at any higher priority level):

                  first, on any Business Day, to any Person to whom taxes or
         Operating Costs are then due and payable, an amount equal to such taxes
         or Operating Costs;

                  second, intentionally omitted;

                                Common Agreement

<PAGE>

                                     - 26 -

                  third, on the first Business Day of each calendar month, pro
         rata, (i) to the EDC Accrual Account, an amount equal to 1/6 of the
         Debt Service owing to EDC on the next Payment Date, and (ii) to the IDB
         Accrual Account, an amount equal to 1/6 of the Debt Service owing to
         IDB on the next Payment Date;

                  fourth, on each Payment Date, to each Senior Lender, an amount
         equal to the sum of (i) the of principal and interest then due and
         payable to such Senior Lender less (ii) the amounts transferred to such
         Senior Lender on such Payment Date from the aggregate cash balance of
         either (A) the EDC Accrual Account pursuant to Section 4.04(b) or (B)
         the IDB Accrual Account pursuant to Section 4.05(b), as the case may
         be.

                  fifth, on any Business Day, to each Senior Lender, an amount
         equal to the Obligations not included under clause "fourth" above which
         are then due and payable to such Senior Lender;

                  sixth, on any Business Day, to the lenders of any Permitted
         Indebtedness (other than Subordinated Indebtedness), the amount of
         principal, interest, scheduled fees and commissions then due and
         payable in connection with such Permitted Indebtedness;

                  seventh, on any Business Day, to any Person to whom Project
         Costs are then due and payable, an amount equal to the aggregate
         Project Costs then due and payable; provided that the Borrower's
         ability to make any payment of Project Costs to SRT in respect of
         Intercompany Loans is subject to (i) the provisions of the Project
         Funds Agreement, (ii) the requirement that the terms of such
         Intercompany Loan are in compliance with Section 8.19 and (iii) the
         requirement that the Project Costs incurred by such date do not exceed
         the sum of $ 113,000,000;

                  eighth, prior to any transfer from the Operating Account
         pursuant to clauses "ninth" through "eleventh" of this Section 4.03(b),
         to the Debt Service Reserve Account, an amount equal to the lesser of
         (A) the aggregate outstanding balance of the Operating Account and (B)
         the Debt Service Reserve Deficiency;

                  ninth, on any Business Day from and after Completion of
         Network Construction, to Persons to whom Expansion Capital Expenditures
         are then due and payable, the aggregate amount of such Expansion
         Capital Expenditures then due and payable;

                  tenth, (i) within five days of each Quarterly Date occurring
         during the period commencing immediately after Completion of Network
         Construction and ending on Financial Completion, to the Cash Sweep
         Account, an amount equal to 100% of the collected credit balance of the
         Operating Account existing on such Quarterly Date after the application
         of the immediately preceding clauses "first" through "ninth" (such
         amount being "Surplus Cash"); and (ii) within five days of each
         Quarterly Date occurring after Financial Completion, to the Cash Sweep
         Account, an amount equal to (A) 50% of the Surplus Cash, so long as no
         Default or Event of Default is existing on such date or (B) 100% of the
         Surplus Cash in the event that a Default or Event of Default is
         existing on such date; and

                  eleventh, on any date on which (i) a transfer from the
         Operating Account is made pursuant to subclause (ii)(A) of clause
         "tenth" above and (ii) the Borrower would be permitted to make a
         Restricted Payment pursuant to Section 8.09, to the Person to whom

                                Common Agreement

<PAGE>

                                     - 27 -

such Restricted Payment is intended to be made, in an amount equal to 50% of
Surplus Cash referred to in subclause (ii)(A) of clause "tenth" above.

                  (c) Transfers from Operating Account When an Event of Default
Is Continuing. At any time that an Event of Default shall have occurred and be
continuing, upon its receipt of notice thereof, the Borrower shall transfer (or
caused to be transferred) from the collected credit balance of the Operating
Account the following amounts in the following order of priority (and no
transfer at any such priority level shall be made on any day if any transfer
remains to be made on such day at any higher priority level): the amounts and
destinations set forth in clauses "first", "third", "fourth", "fifth", "sixth",
"seventh", "eighth" and "tenth" of Section 4.03(b) hereof and, with the consent
of the Senior Lenders, the amount set forth in clause "ninth" of Section 4.03
(b) hereof.

                  4.04 EDC Accrual Account.

                  (a) Deposits into the EDC Accrual Account. In addition to the
deposits described in Section 4.08, the Borrower will make deposits into the EDC
Accrual Account in accordance with clause "third" of Section 4.03(b).

                  (b) Transfers from EDC Accrual Account Prior to an Event of
Default. Unless an Event of Default shall have occurred and be continuing, on
each Payment Date, the Borrower will transfer (or will cause to be transferred)
to EDC from the collected credit balance of the EDC Accrual Account an amount
equal to the lesser of (i) the Debt Service then due and payable to EDC pursuant
to Sections 3.01 and 3.02 of the EDC Loan Agreement and (ii) the aggregate
outstanding balance of the EDC Accrual Account.

                  (c) Transfers When an Event of Default is Continuing. At any
time that an Event of Default shall have occurred and be continuing, the Senior
Lenders may notify the Account Bank of the existence of such Event of Default
and, upon receipt of such notification by the Senior Lenders, the Account Bank
shall make (or cause to be made) transfers from the EDC Accrual Account as
directed by EDC, pursuant to the Project Account Agreement.

                  4.05 IDB Accrual Account.

                  (a) Deposits into the IDB Accrual Account. In addition to the
deposits described in Section 4.08, the Borrower will make deposits into the IDB
Accrual Account in accordance with clause "third" of Section 4.03(b).

                  (b) Transfers from IDB Accrual Account Prior to an Event of
Default. Unless an Event of Default shall have occurred and be continuing, on
each Payment Date, the Borrower will transfer (or will cause to be transferred)
to IDB from the collected credit balance of the IDB Accrual Account an amount
equal to the lesser of (i) the Debt Service then due and payable to IDB pursuant
to Sections 3.01 and 3.02 of the IDB Loan Agreement and (ii) the aggregate
outstanding balance of the IDB Accrual Account.

                  (c) Transfers When an Event of Default is Continuing. At any
time that an Event of Default shall have occurred and be continuing, the Senior
Lenders may notify the Account Bank of the existence of such Event of Default
and, upon receipt of such notification by the

                                Common Agreement

<PAGE>

                                     - 28 -

Senior Lenders, the Account Bank shall make (or cause to be made) transfers from
the IDB Accrual Account as directed to IDB, pursuant to the Project Account
Agreement.

                  4.06   Cash Sweep Account.

                  (a) Deposits into the Cash Sweep Account. In addition to the
deposits described in Section 4.08, the Borrower shall make (or cause to be
made) the following deposits into the Cash Sweep Account:

                  (i) the deposit to be made pursuant to clause "tenth" of
         Section 4.03(b); and

                  (ii) all Proceeds from any conveyance, sale, lease, transfer
         or disposition of any business or Property of the Borrower, in
         accordance with Section 8.05(d).

                  (b) Transfers from Cash Sweep Account Prior to an Event of
Default. Unless an Event of Default shall have occurred and be continuing:

                  (i) on each Interest Payment Date on which the conditions
         described in Section 2.06(a) have occurred, the Borrower will transfer
         (or will cause to be transferred) to the Senior Lenders from the
         collected credit balance of the Cash Sweep Account the amount required
         by Section 2.06(a); and

                  (ii) on December 31, 2002, in the event that a Debt Service
         Reserve Deficiency exists on such day, the Borrower shall transfer to
         the Debt Service Reserve Account, an amount equal to the lesser of (A)
         the Debt Service Reserve Deficiency and (B) the collected credit
         balance of the Cash Sweep Account.

                  (c) Transfers When an Event of Default is Continuing. At any
time that an Event of Default shall have occurred and be continuing, upon
notification by the Senior Lenders to the Account Bank of the existence of such
Event of Default, the Account Bank shall make (or cause to be made) such
transfers from the Cash Sweep Account pursuant to the Project Account Agreement
as are required by the Senior Lenders.

                  4.07 Debt Service Reserve Account.

                  (a) Deposits into Debt Service Reserve Account. In addition to
the deposits described in Section 4.08, deposits into the Debt Service Reserve
Account shall be made as provided in clause "eighth" of Section 4.03(b) or, at
the option of SRT, through equity investments or Subordinated Indebtedness or,
at the option of the Borrower, as provided in Section 4.06(b)(ii).

                  (b) Transfers from Debt Service Reserve Account Prior to an
Event of Default. Unless an Event of Default shall have occurred and be
continuing, the Borrower shall not transfer (or cause to be transferred) any
amount from the collected credit balance of the Debt Service Reserve Account
unless (i) such transfer shall constitute all or a portion of a payment by the
Borrower to the Senior Lenders which payment pays or prepays the Obligations in
full or (ii) the collected credit balance of the Debt Service Reserve Account is
greater than the Debt

                                Common Agreement

<PAGE>

                                     - 29 -

Service Reserve Requirement, in which case the amount in excess of the Debt
Service Reserve Requirement shall be transferred to the Operating Account.

                  (c) Transfers from Debt Service Reserve Account When an Event
of Default is Continuing. At any time that an Event of Default shall have
occurred and be continuing, upon notification by the Senior Lenders to the
Account Bank of the existence of such Event of Default, the Account Bank shall
make (or cause to be made) transfers from the collected credit balance of the
Debt Service Reserve Account pursuant to the Project Account Agreement as are
required by the Senior Lenders.

                  4.08 Investment of Funds in Accounts. The aggregate cash
balance of the Accounts shall be invested in accordance with Sections 5 and 6 of
the Project Account Agreement. Interest and other amounts accruing in respect of
Permitted Investments and all proceeds resulting from the collection, sale,
transfer or disposal of Permitted Investments made with respect to funds on
deposit in any Account, shall be deposited into such Account and remain in such
Account until transferred pursuant to the provisions of this Section 4.

                  4.09 Reports to the Senior Lenders. The Borrower shall deliver
to each Senior Lender within 15 Business Days after the end of each calendar
month occurring during the term of this Agreement, (a) the bank statements
relating to the Accounts and the Borrower Accounts and (b) a report with respect
to the Accounts and the Operating Account, setting forth in reasonable detail
all deposits to and transfers from such Accounts and the Operating Account
during such month, including the date on which made, and the balances of and any
investments in such Accounts and the Operating Account at the end of such month;
provided, however, that (i) the Borrower shall not be required to provide such
report in connection with transfers pursuant to clause "first" of Section
4.03(b) but only total amounts transferred therefrom. The Borrower shall provide
any additional information or reports relating to the Accounts and the Borrower
Accounts and the transactions therein reasonably requested from time to time by
the Senior Lenders and (ii) the Borrower shall demonstrate to the satisfaction
of the Senior Lenders, by the fifth Business Day of each calendar month, that
the Borrower has made the deposits into the EDC Accrual Account and the IDB
Accrual Account pursuant to Section 4.03(b) third.

                  4.10 Currency Conversion. On any Business Day on which an
amount is transferred from a Borrower Account to an Account, to the Senior
Lenders, or otherwise in order to satisfy an obligation of the Borrower
denominated in Dollars, the Borrower shall (i) determine the best available rate
of exchange for converting Chilean Pesos to Dollars (whether from a Chilean
banking institution or the free foreign exchange market) in accordance with the
applicable Chilean laws and regulations regarding foreign exchange transactions,
(ii) calculate the amount of Chilean Pesos to be transferred using the rate of
exchange quoted by the entity as provided for in clause (i) of this Section 4.10
and (iii) purchase Dollars based on such calculation in clause (ii) of this
Section 4.10 not later than 12:30 p.m. in Santiago, Chile, on the applicable
date of determination (or, if no such quotation shall be available on such date,
on the date closest to such date of determination).

                  4.11 Changes to Accounts. The Borrower agrees not to move any
existing bank account, open any new bank account, or alter the flow of cash from
sub accounts to the main

                                Common Agreement

<PAGE>

                                     - 30 -

account from that in effect on the date hereof, in each case without the prior
written consent of the Senior Lenders.

                  Sections 5. Effectiveness vis-a-vis the Borrower. The
effectiveness of this Agreement vis-a-vis the Borrower is subject to the
satisfaction of Section 6.0l(g).

                  Section 6. Conditions.

                  6.01 Initial Disbursement. The effectiveness of the EDC Loan
Agreement, the effectiveness of this Agreement vis-a-vis EDC and the obligations
of IDB to make the initial disbursement under the IDB Loan Agreement are subject
to the conditions precedent that the Senior Lenders shall have received the
following documents or other evidence, each of which shall be satisfactory to
the Senior Lenders in form and substance:

                  (a) Opinions of Counsel.

                           (i) An opinion, dated the Closing Date, of Cruzat,
                  Ortuzar and Mackenna, Chilean counsel to the Transaction
                  Parties, in form and substance satisfactory to the Senior
                  Lenders (and the Borrower hereby instructs such counsel to
                  deliver such opinion to the Senior Lenders);

                           (ii) An opinion, dated the Closing Date, of Winthrop,
                  Stimson, Putnam and Roberts, special New York counsel to the
                  Transaction Parties, in form and substance satisfactory to the
                  Senior Lenders (and the Borrower hereby instructs such counsel
                  to deliver such opinion to the Senior Lenders);

                           (iii) An opinion, dated the Closing Date, of Harney,
                  Westwood & Riegels, British Virgin Islands counsel to BVI
                  Holdco and SR (BV) Holdings, in form and substance
                  satisfactory to the Senior Lenders (and the Borrower hereby
                  instructs such counsel to deliver such opinion to the Senior
                  Lenders);

                           (iv) An opinion, dated the Closing Date, of Martineau
                  Walker, Canadian counsel to SRT, in form and substance
                  satisfactory to the Senior Lenders (and the Borrower hereby
                  instructs such counsel to deliver such opinion to the Senior
                  Lenders);

                           (v) An opinion, dated the Closing Date, of Carey y
                  Cia Ltda., Chilean counsel to the Senior Lenders, in form and
                  substance satisfactory to the Senior Lenders;

                           (vi) An opinion, dated the Closing Date, of Milbank,
                  Tweed, Hadley & McCloy LLP, special New York counsel to the
                  Senior Lenders, in form and substance satisfactory to the
                  Senior Lenders; and

                           (vii) An opinion, dated the Closing Date, of O'Neal
                  Webster O'Neal Myers Fletcher & Gordon, special British Virgin
                  Islands counsel to the Senior Lenders, in form and substance
                  satisfactory to the Senior Lenders.

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                                     - 31 -

                  (b) Organizational Documents. Certified copies of the charter,
         by-laws and good standing certificates (or, in each case, equivalent
         documents) of the Transactions Parties and of all corporate authority
         for each Transaction Party (including, without limitation, board of
         director resolutions and evidence of the incumbency, including specimen
         signatures, of officers) with respect to the execution, delivery and
         performance of such of the Transaction Documents to which such
         Transaction Party is intended to be a party and each other document to
         be delivered by such Transaction Party from time to time in connection
         with the Transaction Documents and the Senior Loans (and each Senior
         Lender may conclusively rely on such certificates until it receives
         notice in writing from such Transaction Party to the contrary).

                  (c) Officer's Certificate. A certificate of the President, a
         Vice President or a Financial Officer of each Transaction Party, dated
         the Closing Date that:

                           (i) the representations and warranties made by such
                  Transaction Party in each Transaction Document to which it is
                  a party shall be true and complete on and as of the Closing
                  Date with the same force and effect as if made on and as of
                  such date (or, if any such representation or warranty is
                  expressly stated to have been made as of a specific date, as
                  of such specific date); and

                           (ii) no Default shall have occurred and be
                  continuing.

                  (d) Financing Documents. Each Financing Document (other than
         the Security Documents referred to in clause (f) below and the IDB
         Notes referred to in Section 6.02(b)) duly executed and delivered by
         each of the parties named as a proposed signatory thereto and in full
         force and effect in accordance with its terms.

                  (e) Project Documents. An original or certified copy of each
         Project Document, duly executed and delivered by the parties thereto
         and in full force and effect in accordance with its terms and certified
         by the Borrower as to completeness and authenticity.

                  (f) Security Documents. Each Security Document shall be (i)
         duly executed by the party required thereby to execute or grant the
         same and in full force and effect in accordance with its terms, and
         (ii) recorded and filed in all jurisdictions wherein such recording and
         filing are necessary or advisable to create and perfect the interests
         of the Senior Lenders in, to and under the collateral referred to
         therein, together with notarized (where required) originals thereof and
         evidence of such filing and that all recording and stamp taxes have
         been paid in full, and all other instruments to be recorded or filed or
         delivered in connection with the Security Documents and all stock
         certificates of the Borrower and each other Transaction Party whose
         shares are collateral under a Security Document. The Borrower shall
         deliver to the Senior Lenders a certified copy of the entry in its
         shares record book evidencing the recordation of and the pledge on such
         shares in favour of the Senior Lenders.

                  (g) Governmental Approvals. Originals (or copies certified by
         the Borrower to be true, complete and authentic copies) of all
         Governmental Approvals (including,

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                                     - 32 -

         without limitation, the Concessions) referred to as having been
         obtained in Section 7.03 hereof and such other Governmental Approvals,
         including all necessary foreign exchange approvals from the Central
         Bank of Chile to enable the Borrower to make payments under the Senior
         Loan Agreements, as are then necessary (in the determination of any
         Senior Lender) under applicable laws and regulations in connection with
         the transactions contemplated by the Transaction Documents, in each
         case in full force and effect, and, if reasonably requested by any
         Senior Lender, copies of all applications made for such Governmental
         Approvals and all material correspondence received or sent in respect
         of such Governmental Approvals or such applications therefor.

                  (h) Models, Budget, etc. The Agreed Financial Model and the
         Business Plan for the Project accepted in all respects by the Senior
         Lenders, examined and confirmed by Deloitte & Touche, Chartered
         Accountants (or other independent public accountants acceptable to the
         Senior Lenders) with only such qualifications and limitations as are
         acceptable to the Senior Lenders in their reasonable discretion. The
         formulas contained in the Agreed Financial Model shall be examined by
         Deloitte & Touche, Chartered Accountants and such accounting firm
         shall certify that the calculations are correct and take into account
         the current applicable tax and accounting rules.

                  (i) Insurance. True and complete copies of binders for the
         insurance policies required pursuant to Section 8.04 hereof together
         with (i) a letter from the Borrower's insurance broker of recent date
         prior to the Closing Date, stating with respect to each insurance
         policy required to be in effect on the Closing Date pursuant to said
         Section 8.04, that (A) such insurance is in full force and effect and
         (B) all premiums theretofore due and payable thereon have been paid and
         (ii) a report from the Independent Insurance Advisor on the adequacy
         and completeness of such insurance coverage.

                  (j) Initial Equity Investment. The Borrower's Financial
         Officer shall deliver a certificate, dated the Closing Date, (i)
         attaching in form and substance satisfactory to the Senior Lenders,
         copies of the Borrower's audited financial statements and balance
         sheets as at December 31, 1998 demonstrating that SRT has made the
         Initial Equity Investment in the Borrower, and (ii) certifying that
         each of the financial statements delivered pursuant to clause (i) above
         are true and complete copies and that the Initial Equity Investment
         remains in the Borrower.

                  (k) Accounts. Notice from the Account Bank to the Senior
         Lenders of the establishment of the Accounts.

                  (l) Process Agent Acceptance. A Process Agent Acceptance, duly
         executed and delivered by the Process Agent to each Senior Lender. Each
         Senior Lender shall also have received a letter from SRT, in which SRT
         agrees to act as the agent for service of process for the Transaction
         Parties for any action in Canada as contemplated in Section 4.05(b) of
         the Transfer Restrictions Agreement.

                  (m) Tariff Decree. An original or certified copy of the decree
         issued by Chile in favour of the Borrower regarding maximum access
         tariffs permitted to be charged by the Borrower.

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                                     - 33 -

                  (n) Environmental Matters. The Borrower shall have submitted,
         in form and substance acceptable to the Senior Lenders, the final EHSM
         Plan and a complete summary of the status of the EHSM Plan's
         implementation as of a date not earlier than one-month prior to the
         initial disbursement. The Borrower shall have submitted to the Senior
         Lenders a copy of the environmental, health and safety annexes to any
         construction contract to which the Borrower is a party for the
         installation of towers, electric cables, posts and fences.

                  (o) Borrower's Independent Accountants. The Borrower shall
         have executed and delivered the letter of authorization to the
         Independent Accountants, in substantially the form of Exhibit F, and
         the Borrower shall have delivered a copy of such letter to the Senior
         Lenders.

                  (p) Other Documents. Such other documents as the Senior
         Lenders may reasonably request.

                  6.02 Initial and Subsequent Disbursements. The obligation of
IDB to make any disbursement of the IDB Loan to the Borrower upon the occasion
of each disbursement under the IDB Loan Agreement (including the initial
disbursement under the IDB Loan Agreement) is subject to the further conditions
precedent that:

                  (a) IDB shall have received a duly executed Disbursement
         Request (as defined in the IDB Loan Agreement), in connection with the
         disbursement of such IDB Loan stating, inter alia, that:

                           (i) Representations and Warranties. Both immediately
                  prior to such disbursement of the IDB Loan and also after
                  giving effect thereto and to the intended use thereof, the
                  representations and warranties made by the Borrower in Section
                  7 hereof, and by each Transaction Party in any other
                  Transaction Document to which such Person is a party, shall be
                  true and correct on and as of the date of the disbursement of
                  the IDB Loan with the same force and effect as if made on and
                  as of such date (or it made solely as of an earlier date,
                  were true and correct as of such date);

                           (ii) No Default. Both immediately prior to such
                  disbursement of the IDB Loan and also after giving effect
                  thereto and to the intended use thereof, no Default or Event
                  of Default shall have occurred and be continuing under this
                  Agreement, and no similar event or events shall have occurred
                  and be continuing under any of the other Transaction
                  Documents, on the date of such disbursement of the IDB Loan;

                           (iii) Material Adverse Effect. Both immediately prior
                  to such disbursement of the IDB Loan and also after giving
                  effect thereto and to the intended use thereof, no event or
                  circumstance shall have occurred which has resulted in nor
                  would reasonably he expected to result in a Borrower Material
                  Adverse Effect or an SRT Material Adverse Effect;

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<PAGE>

                                     - 34 -

                           (iv) Use of Proceeds. The proceeds of such
                  disbursement of the IDB Loan are required to pay or repay
                  amounts then due and owing in connection with the uses of
                  proceeds permitted by Section 8.13 hereof; and

                           (v) Environmental Matters. The Borrower shall certify
                  (A) compliance with all Environmental Requirements by the
                  Project, the Borrower, and any Contractor in relation to the
                  Project, (B) that in relation to the Project there are no
                  adverse environmental, health, safety or social hazards or
                  impacts that have not been adequately mitigated or
                  compensated, (C) there are no Environmental Claims and no
                  material complaints associated with the Project or
                  Environmental Party, and (D) as necessary, a description of
                  any additional or new environmental or social liabilities,
                  including without limitation Environmental Claims, or material
                  complaints, or unforeseen environmental, health or safety
                  impacts or risks.

                  (b) IDB (or, if such IDB Note is to be deposited with the
         Custodian, the Custodian) shall have received for the benefit of IDB:
         (i) an IDB Note in the amount of such disbursement in accordance with
         Section 2.06 of the IDB Loan Agreement, substantially in the form of
         Exhibit A thereto, duly executed by an authorized representative of the
         Borrower and each other signatory thereto and duly notarized before a
         Chilean Notary Public, payable on demand, to the order of IDB in a face
         amount equal to the disbursed amount and on which stamp tax has been
         paid and such Notary Public shall have certified such payment; and (ii)
         if such IDB Note is to be deposited with the Custodian, evidence of the
         deposit of such IDB Note, duly executed and notarized as above
         mentioned, with the Custodian and payment of all stamp tax imposed by
         any relevant Governmental Body in connection with such execution and
         notarization.

                  (c) IDB shall have received such evidence, in form and
         substance satisfactory to IDB, that SRT is in compliance with SRT's
         obligations under the Project Funds Agreement.

                  (d) for all disbursements other than the initial disbursement,
         IDB shall have received a certificate, substantially in the form of
         Exhibit D hereto, from the Independent Engineer confirming that the
         proceeds of such disbursement of the IDB Loan are required to pay or
         repay amounts then due and owing, or due and owing within six months of
         the intended disbursement date, in connection with the uses of proceeds
         permitted by Section 8.13 hereof.

                  (e) The Borrower shall have paid in full all outstanding and
         invoiced fees and expenses of the Senior Lenders (including, without
         limitation, fees and expenses which have been invoiced and are then
         owed to consultants and attorneys retained to assist the Senior Lenders
         in connection with the transactions contemplated hereby), if any, in
         each case to the extent such fees and expenses are required to be paid
         pursuant to this Agreement or the other Transaction Documents.

Each Disbursement Request by the Borrower under the IDB Loan Agreement shall
constitute a certification by the Borrower to the effect set forth in this
Section 6.02 (both as of the date of

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<PAGE>

                                     - 35 -

such notice and, unless the Borrower otherwise notifies IDB prior to the date of
such borrowing, as of the date of such borrowing).

                  Section 7. Representations and Warranties. The Borrower
represents and warrants to the Senior Lenders that:

                  7.01 Organization and Powers. The Borrower: (a) is a sociedad
anonima duly organized, validly existing and in good standing under the laws of
Chile; (b) has all requisite corporate or other power, and has all material
governmental licenses, authorizations, consents and approvals necessary to own
its assets and carry on its business as now being or as proposed to be
conducted; and (c) is qualified to do business and is in good standing in all
jurisdictions in which the nature of the business conducted by it makes such
qualification necessary and where failure so to qualify could (either
individually or in the aggregate) have a Borrower Material Adverse Effect.

                  7.02 Authorization, Enforceability. The Borrower has all
necessary corporate power, authority and legal right to execute, deliver and
perform its Obligations under each of the Transaction Documents to which it is a
party; the execution, delivery and performance by the Borrower of each of the
Transaction Documents to which it is a party have been duly authorized by all
necessary corporate action on its part (including, without limitation, any
required shareholder approvals); and this Agreement has been duly and validly
executed and delivered by the Borrower and constitutes, and the Notes and the
other Transaction Documents to which it is a party when executed and delivered
(in the case of the Notes, for value) will constitute, its legal, valid and
binding obligations, enforceable against the Borrower in accordance with its
terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforcement of creditors' rights and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

                  7.03 Approvals. No Governmental Approvals (including any
exchange control approval), are necessary for the execution, delivery or
performance by the Borrower of this Agreement or any of the other Transaction
Documents to which it is a party or for the legality, validity or enforceability
hereof or thereof, except for (i) filings and recordings in respect of the Liens
created pursuant to the Security Documents and (ii) those Governmental Approvals
listed in Schedule II hereof. The Borrower knows of no condition, event or
circumstance that currently, or with the passage of time, could materially
interfere with its ability to perform its obligations under the Concessions or
its ability to collect revenues from its operations pursuant to the Concessions
and from its other assets. The Concessions have been duly executed and delivered
by SUBTEL and constitute the legal, valid and binding obligation of SUBTEL,
enforceable against SUBTEL in accordance with its terms. All Governmental
Approvals and other consents or approvals required in connection with the
granting, execution and delivery of the Concessions by SUBTEL have been duly
obtained or made, are in full force and effect and are not subject to appeal or
judicial, governmental or other review.

                  7.04 No Breach. None of the execution and delivery of this
Agreement, the Notes and the other Transaction Documents, the consummation of
the transactions herein and therein contemplated or compliance with the terms
and provisions hereof and thereof will

                                Common Agreement

<PAGE>

                                     - 36 -

conflict with or result in a breach of, or require any consent under, the
organizational documents of the Borrower, or any applicable law or regulation
(including, without limitation, regulations of the Central Bank of Chile), or
any order, writ, injunction or decree of any court or Governmental Body, or any
agreement or instrument to which the Borrower is a party or by which it or any
of its Property is bound or to which it is subject, or constitute a default
under any such agreement or instrument, or (except for the Liens created
pursuant to the Security Documents) result in the creation or imposition of any
Lien upon any Property of the Borrower pursuant to the terms of any such
agreement or instrument.

                  7.05 Financial Condition; No Material Adverse Change.

                  (a) Financial Condition. The Borrower has heretofore furnished
to the Senior Lenders the audited balance sheet of the Borrower as at December
31, 1998 and the related audited statements of income, retained earnings and
cash flows of the Borrower for the fiscal year ended on such date, with the
opinion thereon of Deloitte & Touche Sociedad de Auditores y Consultores
Limitada. All such financial statements are complete and correct and fairly
present the financial condition of the Borrower, as at such date and the results
of its operations for the fiscal year ended on such date, all in accordance with
generally accepted accounting principles and practices applied on a consistent
basis. The Borrower has on the date hereof no material contingent liabilities,
liabilities for taxes, unusual forward or long-term commitments or unrealized or
anticipated losses from any unfavorable commitments, except as referred to or
reflected or provided for in such balance sheets as at such dates.

                  (b) No Material Adverse Change. Since December 31, 1998, there
has been no material adverse change in the financial condition, operations,
business or prospects taken as a whole of the Borrower from that set forth in
the financial statements as at such date referred to in paragraph (a) of this
Section 7.05.

                  (c) Year 2000 Issues. The Borrower has undertaken a review and
assessment of all areas within its business and operations that could be
adversely affected by its failure to be Year 2000 Compliant on a timely basis
and has developed and implemented a comprehensive, detailed program to become
Year 2000 Compliant and is presently Year 2000 Compliant and, on the basis of
inquiries made, reasonably believes that each supplier and vendor of the
Borrower that is of material importance to the financial well-being of the
Borrower has achieved Year 2000 Compliance, and will remain Year 2000 Compliant.

                  (d) Management Information System. The Borrower has installed
a management information system (i) satisfactory to enable the Borrower to
conduct the business of the Project as contemplated by the Agreed Financial
Model and (ii) similar in nature to the management information systems
customarily used by similar businesses.

                  7.06 Properties.

                  (a) Property Generally. The Borrower owns and has on the date
hereof good and marketable title (subject only to Liens permitted by Section
8.06) to the Properties shown to be owned in the most recent financial
statements referred to in Section 7.05 (other than Properties disposed of in the
ordinary course of business or otherwise permitted to be disposed of pursuant

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<PAGE>

                                     - 37 -

to Section 8.05). The Borrower owns and has on the date hereof good and
marketable title to, and enjoys on the date hereof peaceful and undisturbed
possession of, all Properties (subject only to Liens permitted by Section 8.06)
that are necessary for the operation and conduct of its businesses.

                  (b) Intellectual Property. The Borrower owns, or is licensed
to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Borrower does not
infringe upon the rights of any other Person, except for any such infringements
that, individually or in the aggregate, could not reasonably be expected to
result in a Borrower Material Adverse Effect.

                  7.07 Litigation. There are no legal or arbitral proceedings,
or any proceedings by or before any governmental or regulatory authority or
agency, now pending or (to the knowledge of the Borrower) threatened against the
Borrower that, if adversely determined, could (either individually or in the
aggregate) have a Borrower Material Adverse Effect.

                  7.08 Compliance with Laws and Agreements. The Borrower is in
compliance with all laws, regulations and orders of any Governmental Body
(including, without limitation, the Central Bank of Chile) applicable to it or
its Property, all Governmental Approvals, the Concessions and all indentures,
agreements and other instruments (including, without limitation, the agreements
referred to in Section 7.11 (a)) binding upon it or its Property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Borrower Material Adverse Effect.

                  7.09 Taxes. The Borrower has filed all material tax returns
that are required to be filed by it and has paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Borrower. The charges,
accruals and reserves on the books of the Borrower in respect of taxes and other
governmental charges are, in the opinion of the Borrower, adequate. The Borrower
has not given or been requested to give a waiver of the statute of limitations
relating to the payment of any or other impositions. All material taxes required
to be withheld by the Borrower have been timely and duly withheld and properly
paid to the appropriate Governmental Body.

                  7.10 True and Complete Disclosure. The information, reports,
financial statements, exhibits and schedules, including, without limitation, the
Agreed Financial Model and the Business Plan, furnished in writing by or on
behalf of the Borrower to the Senior Lenders in connection with the negotiation,
preparation or delivery of this Agreement and the other Transaction Documents or
included herein or therein or delivered pursuant hereto or thereto, (a) have
been prepared in good faith, based upon assumptions believed by the Borrower to
be reasonable at the time they were made and (b) when taken as a whole do not
contain any untrue statement of material fact or omit to state any material fact
necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading. All written
information furnished after the date hereof by the Borrower to the Senior
Lenders in connection with this Agreement and the other Transaction Documents
and the transactions contemplated hereby and thereby will be true, complete and
accurate in every material respect, or (in the case of projections) based on
reasonable estimates, on the date as of which such information is stated or
certified. There is no fact known to the Borrower that could have a

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<PAGE>

                                     - 38 -

Borrower Material Adverse Effect that has not been disclosed herein, in the
other Transaction Documents or in a report, financial statement, exhibit,
schedule, disclosure letter or other writing furnished to the Senior Lenders for
use in connection with the transactions contemplated hereby or thereby.

                  7.11 Material Agreements and Liens.

                  (a) Material Agreements. Part A of Schedule I is a complete
and correct list of each credit agreement, loan agreement, indenture, purchase
agreement, guarantee, letter of credit or other arrangement providing for or
otherwise relating to any Indebtedness (other than the Indebtedness under the
Senior Loan Agreements) or any extension of credit (or commitment for any
extension of credit) to, or guarantee by, the Borrower outstanding on the date
hereof the aggregate principal or face amount of which equals or exceeds (or may
equal or exceed) $ 100,000, and the aggregate principal or face amount
outstanding or that may become outstanding under each such arrangement is
correctly described in Part A of Schedule I. Schedule I correctly describes all
secured and unsecured Indebtedness of the Borrower outstanding, or for which the
Borrower has commitments, on the date of this Agreement, and identifies the
collateral securing any secured Indebtedness. No event has occurred and no
condition exists with respect to any Indebtedness of the Borrower or any
instrument or agreement relating thereto that, with the giving of notice, the
passing of time, or both, could reasonably be expected to permit one or more
Persons to cause such Indebtedness to become due before its stated maturity or
before its regularly scheduled dates of payment and, except as set forth on
Schedule I, no instrument or agreement applicable to or binding on the Borrower
or any Affiliate contains any restrictions on the incurrence by any such Person
of additional Indebtedness hereunder except for the Trust Indenture and the
commitment letters for the banking arrangements with Royal Bank of Canada and
Canadian Imperial Bank of Commerce.

                  (b) Liens. Part B of Schedule I is a complete and correct list
of each Lien securing Indebtedness of any Person outstanding on the date hereof
the aggregate principal or face amount of which equals or exceeds (or may equal
or exceed) $50,000 and covering any Property of the Borrower (other than the
Liens securing the Senior Loans), and the aggregate Indebtedness secured (or
that may be secured) by each such Lien and the Property covered by each such
Lien is correctly described in Part B of Schedule I.

                  7.12 Capitalization. The authorized capital stock of the
Borrower consists, on the date hereof, of an aggregate of 121,074 shares of
common stock with no par value, duly and validly issued and outstanding, each of
which shares is fully paid by the holder thereof and nonassessable. As of the
date hereof 99.8416% of such issued and outstanding shares of common
stock are owned beneficially and of record by Chilean Holdco and 0.1584% of such
issued and outstanding shares of preferred stock are owned beneficially and of
record by BVI Holdco. As of the date hereof, there are no outstanding equity
rights with respect to the Borrower and there are no outstanding obligations of
the Borrower to repurchase, redeem, or otherwise acquire any shares of capital
stock of the Borrower nor are there any outstanding obligations of the Borrower
to make payments to any Person, such as "phantom stock" payments, where the
amount thereof is calculated with reference to the fair market value or equity
value of the Borrower.

                                Common Agreement

<PAGE>

                                     - 39 -

                  7.13 Legal Form. Each of the Financing Documents is in proper
legal form under the law of Chile for the enforcement thereof against the
Borrower under such law, and if each of the Financing Documents were stated to
be governed by such law, they would constitute legal, valid and binding
obligations of the Borrower under such law, enforceable in accordance with their
respective terms. All formalities required in Chile for the validity and
enforceability of each of the Financing Documents (including, without
limitation, any necessary registration, recording or filing with any court or
other authority in Chile) have been accomplished, and no Covered Taxes are
required to be paid to Chile, or any political subdivision thereof or therein,
and no notarization is required, for the validity and enforceability thereof.

                  7.14 Ranking. This Agreement and the other Financing Documents
and the obligations evidenced hereby and thereby are and will at all times be
direct and unconditional general obligations of the Borrower, and rank and will
at all times rank in right of payment at least pari passu with all other
Indebtedness of the Borrower, whether now existing or hereafter outstanding.
There exists no Lien (including any Lien arising out of any attachment, judgment
or execution), nor any segregation or other preferential arrangement of any
kind, on, in or with respect to any of the Property or revenues of the Borrower,
except as expressly permitted by Section 8.06.

                  7.15 Security Interests. At all times from and after the
Closing Date and subject to any qualifications expressed in the legal opinion
delivered pursuant to Section 6.01(a)(i), the provisions of the Security
Documents are effective to create, in favour of the Senior Lenders party
thereto, a legal, valid and enforceable Lien on and security interest in all the
Collateral purported to be covered thereby. The following actions will be taken
on or before the Closing Date:

                  (a) with respect to the Collateral secured by (i) all of the
         Chilean Security Documents, each such document shall be executed in the
         form of a public deed; (ii) the Chilean Pledge Agreements, each such
         agreement shall be registered in the applicable shareholder's registry;
         and (iii) the Pledges Without Conveyance on Chattel Property shall be
         appropriately published in accordance with the requirements of Chilean
         law;

                  (b) with respect to:

                           (i) the Collateral secured by the SR (BV) Holdings
                  Pledge Agreement:

                                    (A) the said agreement shall be executed by
                           all parties thereto;

                                    (B) particulars of the said agreement shall
                           be entered in a Register of Mortgages and Charges for
                           SR (BV) Holdings as a first charge after the existing
                           charges on the charged asset have been noted as
                           having been discharged;

                                    (C) the Share Register for BVI Holdco shall
                           be endorsed with particulars of the said agreement;

                                    (D) the Register of Mortgages and Charges
                           for SR (BV) Holdings shall be lodged for registration
                           with the BVI Companies' Registry;

                                Common Agreement

<PAGE>

                                     - 40 -

                                    (E) the Share Register for BVI Holdco shall
                           be lodged for registration with the BVI Companies
                           registry; and

                                    (F) appropriate resolutions relating to the
                           above have been passed by SR (BV) Holdings and BVI
                           Holdco; and

                           (ii) such of the Chilean Security Documents as are to
                  be executed by SR (BV) Holdings or BVI Holdco:

                                    (A) the particulars of any Chilean Security
                           Document shall be entered in the Register of
                           Mortgages and Charges of SR (BV) Holdings or BVI
                           Holdco, as the case may be, after the existing
                           charges on the relevant charged asset have been noted
                           as having been discharged;

                                    (B) the said Register of Mortgages and
                           Charges shall be lodged for registration with the BVI
                           Companies Registry; and

                                    (C) appropriate resolutions relating to the
                           above have been passed by SR (BV) Holdings and BVI
                           Holdco; and

                  (c) all other necessary and appropriate action will have been
         taken, so that each such Security Document will create a perfected Lien
         on and security interest in all such Collateral, prior and superior to
         all other Liens and Permitted Liens.

                  7.16 Commercial Activity; Absence of Immunity. The Borrower is
subject to civil and commercial law with respect to its obligations under this
Agreement and each of the other Financing Documents to which it is a party. The
execution, delivery and performance by the Borrower of this Agreement and each
of the other Financing Documents to which it is a party constitute private and
commercial acts rather than public or governmental acts. Neither the Borrower,
nor any of its Properties or revenues, is entitled to any right of immunity in
any jurisdiction from suit, court jurisdiction, judgment, attachment (whether
before or after judgment), set-off or execution of a judgment or from any other
legal process or remedy relating to the obligations of the Borrower under this
Agreement or any of the other Financing Documents to which it is a party.

                  7.17 Insurance. The Borrower maintains (a) the insurance
coverage in compliance with Section 8.04 and Exhibit A and (b) such other
insurance policies, with insurers that the Borrower reasonably believes are
financially sound and reputable, insurance with respect to its business and
properties to the extent that property of similar characteristics to that of the
Borrower is usually so insured (whether within or outside Chile) in accordance
with good business practice.

                  7.18 Business Purpose. The Borrower has not engaged in any
business other than the development, construction, completion, ownership and
operation of the Project pursuant to the Project Documents.

                                Common Agreement

<PAGE>

                                     - 41 -

                  7.19 Environmental Matters.

                  (a) There are no facts, circumstances, conditions or
occurrences regarding the Project that could reasonably be expected (i) to form
the basis of an Environmental Claim arising with respect to the development,
construction, ownership or operation of the Project against the Project or any
Environmental Party, that individually or in the aggregate could result in a
Borrower Material Adverse Effect, (ii) to cause the Project to be subject to any
restrictions on ownership, occupancy, use or transferability under any
Environmental Law, (iii) to require the filing or recording of any notice,
registration, permit or disclosure documents under any Environmental Law or (iv)
to have a material negative impact on the environment.

                  (b) There are no past, pending or, to the best knowledge of
the Borrower after due inquiry, threatened Environmental Claims or material
complaints arising with respect to the development, construction, ownership or
operation of the Project against the Project or any Environmental Party.

                  (c) Hazardous Materials have not at any time been generated,
used, treated, recycled, stored on or transported to or from or Released at, on,
under or from the Project other than in compliance at all times with all
applicable Environmental Laws.

                  (d) There are not now and, to the best knowledge of the
Borrower after due inquiry, never have been any underground storage tanks
located on any Property of the Borrower, there is no asbestos contained in,
forming part of, or contaminating any part of the Project, and no
polychlorinated biphenyls ("PCBs") are used, stored, located at or contaminate
any part of the Project.

                  (e) There have been no environmental, social, or health and
safety investigations, studies, audits, reviews or other analyses conducted by
or on behalf of or which are in the possession of the Borrower or SRT in
relation to the Project which have not been delivered to the Senior Lenders. The
Borrower is not aware of any fact or circumstance that would contravene or
conflict with in any material fashion any conclusion, finding or assumption
contained in the Environmental Reports.

                  (f) The Borrower is not aware of any evidence of soil or
groundwater contamination at the Project sites.

                  (g) There are no past or existing non-compliances with the
Environmental Requirements related to the Project, Borrower, Properties or
Contractors.

                  7.20 Qualification. It is not necessary under the applicable
law of Chile (a) in order to enable the Senior Lenders to enforce their rights
hereunder and under the other Financing Documents or (b) solely by reason of the
execution, delivery and performance of this Agreement and the other Financing
Documents (and the consummation of the transactions contemplated hereby and
thereby), that any Senior Lender or any Participant (as defined in the IDB Loan
Agreement) should be licensed, qualified or otherwise authorized to carry on
business in Chile.

                                Common Agreement

<PAGE>

                                     - 42 -

                  7.21 Domicile. Under the applicable law of Chile, no Senior
Lender nor any Participant (as defined in the IDB Loan Agreement) is or will be
deemed to be resident, domiciled or carrying on business in Chile solely by
reason only of the execution, delivery, performance and/or enforcement of this
Agreement and the other Financing Documents.

                  7.22 Choice of Law. Under the laws of Chile, the choice of New
York law to govern this Agreement and the other Financing Documents containing a
provision stating that New York governs such document is valid and binding.
Under the procedural law applicable to procedures adhered to by Chilean courts,
the consent to the jurisdiction of courts of the State of New York or of the
Province of Ontario, Canada, or of the courts of the United States of America
for the Southern District of New York, by the Borrower in Section 10.08 is valid
and binding and not subject to revocation, and service of process effected in
the manner set forth in Section 10.08 will be effective to confer personal
jurisdiction over the Borrower in such courts.

                  Section 8. Covenants of the Borrower. The Borrower covenants
and agrees with the Senior Lenders that, so long as any Commitment (as defined
in either Senior Loan Agreement) or any Senior Loan is outstanding and until
payment in full of all amounts payable by the Borrower hereunder or under any
Financing Document:

                  8.01 Financial Statements and Other Information. The Borrower
shall deliver to the Senior Lenders:

                  (a) as soon as available and in any event within 120 days
         after the end of each fiscal year of the Borrower, statements of
         income, retained earnings and cash flows of the Borrower for such
         fiscal year and the related balance sheet of the Borrower as at the end
         of such fiscal year, and accompanied by an opinion thereon of the
         Independent Accountants, which opinion shall state that such financial
         statements fairly present the financial condition and results of
         operations of the Borrower as at the end of, and for, such fiscal year
         in accordance with both Chilean GAAP and Canadian GAAP, and a statement
         of such accountants to the effect that, in making the examination
         necessary for their opinion, nothing came to their attention that
         caused them to believe that the Borrower was not in compliance with
         Sections 8.03(e), 8.07, 8.09 and 8.10, insofar as such Sections relate
         to accounting matters:

                  (b) as soon as available and in any event within 45 days after
         the end of each quarterly fiscal period of each fiscal year of the
         Borrower, unaudited interim statements of income, retained earnings and
         cash flows of the Borrower for such period and for the period from the
         beginning of the respective fiscal year to the end of such period, and
         the related balance sheet of the Borrower as at the end of such period,
         accompanied by a certificate of a Financial Officer of the Borrower,
         which certificate shall (i) state that such financial statements fairly
         present the financial condition and results of operations of the
         Borrower in accordance with Canadian GAAP, consistently applied, as at
         the end of, and for, such period (subject to normal year-end audit
         adjustments), (ii) state that no Default has occurred and is continuing
         (or if any Default has occurred and is continuing, describing the same
         in reasonable detail and describing the action that the Borrower has
         taken or proposes to take with respect thereto) and (iii) set forth in
         reasonable detail the computations necessary to determine whether the
         Borrower is in compliance with

                                Common Agreement

<PAGE>

                                     - 43 -

         Sections 8.07, 8.09, 8.10, as of the end of the respective quarterly
         fiscal period or fiscal year;

                  (c) as soon as available and in any event (i) within 30 days
         after the end of each calendar month (or, if the end of such calendar
         month is a Quarterly Date, within 45 days after such Quarterly Date)
         unaudited interim statements of income, retained earnings and cash
         flows of the Borrower for such period and for the period from the
         beginning of the respective fiscal year to the end of such period, and
         the related balance sheet of the Borrower as at the end of such period,
         and (ii) within 30 days after the end of each calendar month a progress
         report detailing, inter alia, subscriber numbers by line type, minutes
         of use by line type, revenues by source, and Capital Expenditures
         substantially in the form of Exhibit B hereto and explaining any
         variances to the Agreed Financial Model;

                  (d) as soon as available and in any event within 30 days after
         the end of each calendar year, compliance reports certifying compliance
         with its environmental, regulatory and other legal compliance of all
         applicable statutes;

                  (e) promptly upon their becoming available, copies of all
         registration statements and regular periodic reports, if any, that the
         Borrower shall have filed with the Securities and Exchange Commission
         (or any governmental agency substituted therefor) or any national
         securities exchange;

                  (f) promptly upon the mailing thereof to the shareholders of
         the Borrower generally, or to holders of Subordinated Indebtedness
         generally, copies of all financial statements, reports and proxy
         statements so mailed and, prior to any meeting of the shareholders of
         the Borrower, a copy of the agenda for such meeting; and

                  (g) from time to time such other information regarding the
         financial condition, operations, business or prospects of the Borrower,
         or compliance with the terms of this Agreement and the other Financing
         Documents, as the Senior Lenders may reasonably request.

                  8.02 Notices of Material Events. The Borrower will furnish the
following to the Senior Lenders in writing:

                  (a) immediately after the Borrower knows or has reason to
         believe that any Default or Event of Default has occurred, notice of
         such Default or Event of Default;

                  (b) immediate notice of all legal or arbitral proceedings, and
         of all proceedings by or before any governmental or regulatory
         authority or agency, and of any material development in respect of such
         legal or other proceedings, affecting the Borrower;

                  (c) prompt notice of changes to the Project (including,
         without limitation, any notice required pursuant to Section 8.04(e)(i):

                                Common Agreement

<PAGE>

                                     - 44 -

                  (d) within five days of the earlier of (i) Borrower's receipt
         thereof and (ii) SUBTEL's sending thereof, notice and copies of any
         material communication with SUBTEL concerning the Concessions;

                  (e) promptly following receipt thereof by the Borrower, any
         management letter or other communication sent by the Independent
         Accountants in relation to the Borrower's financial, accounting and
         other systems, management or accounts; and

                  (f) prompt notice of any other development that results in, or
         could reasonably be expected to result in, a Borrower Material Adverse
         Effect or an SRT Material Adverse Effect.

Each notice delivered under this Section 8.02 shall be accompanied by a
statement of a Financial Officer or other executive officer of the Borrower
setting forth the details of the event or development requiring such notice and
any action taken or proposed to be taken with respect thereto.

                  8.03 Existence, Compliance, Records, Inspection, Etc. The
         Borrower will:

                  (a) preserve and maintain its legal existence and all of its
         Governmental Approvals, material rights, privileges, licenses and
         franchises, including, without limitation, its rights under the
         Concessions (provided that nothing in this Section 8.03 shall prohibit
         any transaction expressly permitted under Section 8.05);

                  (b) comply with the requirements of all applicable laws,
         rules, regulations and orders of any Governmental Body if failure to
         comply with such requirements could (either individually or in the
         aggregate) have a Borrower Material Adverse Effect;

                  (c) pay and discharge all obligations, taxes, assessments and
         governmental charges or levies imposed on it or on its income or
         profits or on any of its Property prior to the date on which penalties
         attach thereto, except for any such obligations, tax, assessment,
         charge or levy the payment of which is being contested in good faith
         and by proper proceedings and against which adequate reserves are being
         maintained;

                  (d) maintain all of its Properties used or useful in its
         business in good working order and condition, ordinary wear and tear
         excepted;

                  (e) maintain a satisfactory management information system and
         keep adequate records and books of account, in which complete entries
         will be made in accordance with generally accepted accounting
         principles consistently applied, and maintain the Independent
         Accountants;

                  (f) permit representatives of the Senior Lenders, during
         normal business hours, to examine, copy and make extracts from its
         books and records, to inspect any of its Properties, and to discuss its
         business and affairs with its officers and the Independent Accountants,
         all to the extent reasonably requested by the Senior Lenders; and

                                Common Agreement

<PAGE>

                                     - 45 -

                  (g) maintain its office located at the address set forth in
         Section 10.01 (a) as its registered domicile and principal place of
         business until 60 days after written notice to the Senior Lenders of
         any change of such address.

                  8.04 Insurance.

                  (a) Insurance by the Borrower. The Borrower shall procure at
its own expense and maintain in full force and effect at all times on and after
the Closing Date, and continuing throughout the term of this Agreement insurance
policies with responsible insurance companies authorized to do business in Chile
with (i) a Best Insurance Reports rating of "A-" or better and an financial size
category of "IX" or higher, (ii) or if not rated by Best a Standard & Poor's
financial strength rating of "BBB" or higher, (iii) or other companies
acceptable to the Senior Lenders. Insurance policies shall be maintained with
limits and coverage provisions customary for companies of the size and
conducting business similar to that of the Borrower, but in no event less than
the limits and coverage provisions set forth in Exhibit A to this Agreement, the
terms of such Exhibit A shall be those agreed by the Borrower and Senior Lenders
from time to time.

                  (b) Endorsements. All policies of insurance to be maintained
by the Borrower shall provide for waivers of subrogation in favour of the Senior
Lenders. All policies of liability insurance required to be maintained by the
Borrower under Exhibit A, other than employer's liability, shall be endorsed as
follows:

                  (i) To provide a severability of interest or cross liability
         clause;

                  (ii) To name the Senior Lenders as additional insureds; and

                  (iii) That the insurance shall be primary and not excess to or
         contributing with any insurance or self-insurance maintained by the
         additional insureds.

                  (c) Waiver of Subrogation. The Borrower hereby waives any and
every claim for recovery from the Senior Lenders for any and all loss or damage
covered by any of the insurance policies to be maintained under this Agreement
to the extent that such loss or damage is recovered under any such policy.
Inasmuch as the foregoing waiver will preclude the assignment of any such claim
to the extent of such recovery, by subrogation (or otherwise), to an insurance
company (or other Person), the Borrower shall give written notice of the terms
of such waiver to each insurance company which has issued, or which may issue in
the future, any such policy of insurance (if such notice is required by the
insurance policy) and shall cause each such insurance policy to be properly
endorsed by the issuer thereof to, or to otherwise contain one or more
provisions that, prevent the invalidation of the insurance coverage provided
thereby by reason of such waiver.

                  (d) Amendment of Requirements. The Senior Lenders may at any
time amend the requirements and approved insurance companies of this Section
8.04 due to (i) new information not known by the Senior Lenders on the Closing
Date or (ii) changed circumstances after the Closing Date which in the
reasonable judgment of the Senior Lenders either renders such coverage
materially inadequate or materially reduces the financial ability of the
approved insurance companies to pay claims.

                                Common Agreement

<PAGE>

                                     - 46 -

                  (e) Conditions.

                  (i) The Borrower shall promptly notify the Senior Lenders of
         any loss in excess of $500,000.

                  (ii) All policies of property, business interruption,
         installation and transportation insurance shall provide that the
         proceeds of such policies shall be payable solely to the Senior Lenders
         pursuant to a standard first mortgage endorsement substantially
         equivalent to the Lenders Loss Payable Endorsement 438BFU or ISO
         endorsement CP12181091, without contribution; provided that if the
         proceeds thereof are less than $500,000, such proceeds shall be paid to
         the Borrower. The Senior Lenders shall have the right to join the
         Borrower in adjusting any loss in excess of $500,000. All policies
         (other than in respect to liability or workers compensation insurance)
         shall insure the interests of the Senior Lenders regardless of any
         foreclosure relating to the Project.

                  (iii) A loss under any property, business interruption,
         installation or transportation insurance shall be adjusted with the
         insurance companies, including the 'filing in a timely manner of
         appropriate proceedings, by the Borrower, subject to the approval of
         the Senior Lenders if such loss is in excess of $500,000. In addition,
         the Borrower may in its reasonable judgment consent to the settlement
         of any loss, provided that in the event that the amount of the loss
         exceeds $500,000 the terms of such settlement is concurred with by the
         Senior Lenders.

                  (iv) All policies of insurance required to be maintained by
         the Borrower shall be endorsed so that if at any time should they be
         assigned, canceled, modified or coverage be reduced which affects the
         interests of the Senior Lenders, such cancellation or reduction shall
         not be effective as to the Senior Lenders for 60 days, except for
         nonpayment of premium which shall be for 10 days, after receipt by the
         Senior Lenders of written notice from such insurer of such cancellation
         or reduction.

                  (v) All policies of property insurance required to be
         maintained by the Borrower shall (A) not include any annual or term
         aggregate limits of liability or clause requiring the payment of
         additional premium to reinstate the limits after loss except as regards
         the insurance applicable to the perils of flood, earth movement,
         sabotage and terrorism, (B) shall include the Senior Lenders as
         additional insured as its interest may appear and (C) include a clause
         requiring the insurer to make final payment on any claim within 45 days
         after the submission of proof of loss and its acceptance by the
         insurer.

                  (f) Evidence of Insurance. On or prior to the Closing Date,
and on an annual basis prior to each policy anniversary, the Borrower shall
furnish the Senior Lenders with (i) approved certification of all required
insurance and (ii) a schedule of the insurance policies held by or for the
benefit of the Borrower and required to be in force by the provisions of this
Section 8.04. Such certification shall be executed by each insurer or by an
authorized representative of each insurer where it is not practical for such
insurer to execute the certificate itself. Such certification shall identify
underwriters, the type of insurance, the insurance limits and the policy term
and shall specifically list the special provisions enumerated for such insurance
required by this Section 8.04. Upon request, the Borrower will promptly furnish
the

                                Common Agreement

<PAGE>

                                     - 47 -

Senior Lenders with copies of all insurance policies, binders and cover notes or
other evidence of such insurance relating to the insurance required to be
maintained by the Borrower. The schedule of insurance shall include the name of
the insurance company, policy number, type of insurance, major limits of
liability and expiration date of the insurance policies.

                  (g) Reports. Concurrently with the furnishing of the
certification referred to in Section (f), the Borrower shall furnish the Senior
Lenders with a report of an independent broker, signed by an officer of the
broker, stating that in the opinion of such broker, the insurance then carried
or to be renewed is in accordance with the terms of Exhibit A hereto and
attaching an updated copy of the schedule of insurance required by Section (f)
above. In addition the Borrower will advise the Senior Lenders in writing
promptly of any default in the payment of any premium and of any other act or
omission on the part of the Borrower which may invalidate or render
unenforceable, in whole or in part, any insurance being maintained by the
Borrower pursuant to this Section 8.04.

                  (h) Failure to Maintain Insurance. In the event the Borrower
fails to take out or maintain the full insurance coverage required by this
Section 8.04, the Senior Lenders, upon 30 days' prior notice (unless the
aforementioned insurance would lapse within such period, in which event notice
should be given as soon as reasonably possible) to the Borrower of any such
failure, may (but shall not be obligated to) take out the required policies of
insurance and pay the premiums on the same. All amounts so advanced thereof by
the Senior Lenders shall become an additional Obligation of the Borrower to the
Senior Lenders, and the Borrower shall forthwith pay such amounts to the Senior
Lenders, together with interest thereon at the applicable Post Default Rate (as
defined in the Senior Loan Agreement applicable to the relevant Senior Lender)
from the date so advanced.

                  (i) No Duty of Lender to Verify or Review. No provision of
this Section 8.04 or any provision of the Senior Loan Agreements or any other
Transaction Document shall impose on the Senior Lenders any duty or obligation
to verify the existence or adequacy of the insurance coverage maintained by the
Borrower, nor shall the Senior Lenders be responsible for any representations or
warranties made by or on behalf of the Borrower to any insurance company or
underwriter. Any failure on the part of any Senior Lender to pursue or obtain
the evidence of insurance required by this Agreement from the Borrower and/or
failure of any Senior Lender to point out any non-compliance of such evidence of
insurance shall not constitute a waiver of any of the insurance requirements in
this Agreement.

                  8.05 Prohibition of Fundamental Changes. The Borrower will
not:

                  (a) enter into any transaction of merger or consolidation or
         amalgamation, or liquidate, wind up or dissolve itself (or suffer any
         liquidation or dissolution);

                  (b) amend or otherwise modify any provision of any of its
         charter, by-laws or equivalent documents in any manner which would be
         likely to result in a Borrower Material Adverse Effect, without the
         prior written consent of the Senior Lenders;

                  (c) acquire any business or Property from, or capital stock
         of, or be a party to any acquisition of, any Person except for
         purchases of inventory and other Property to be sold

                                Common Agreement

<PAGE>

                                     - 48 -

         or used in the ordinary course of business and Investments permitted
         under Section 8.08(c); and

                   (d) without the prior written consent of the Senior Lenders,
          convey, sell, lease, transfer or otherwise dispose of, in one
          transaction or a series of transactions, all or a substantial part of
          its business or Property, whether now owned or hereafter acquired
          (including, without limitation, receivables and leasehold interests,
          but excluding (i) obsolete or worn-out Property, tools or equipment no
          longer used or useful in its business so long as the amount thereof
          sold in any single fiscal year by the Borrower shall not have a fair
          market value in excess of $500,000 and (ii) any inventory or other
          Property sold or disposed of in the ordinary course of business and on
          ordinary business terms). The Borrower shall deposit into the Cash
          Sweep Account all proceeds from any such conveyance, sale, lease,
          transfer or disposition.

                  8.06 Liens.

                  (a) The Borrower will not create, incur, assume or suffer to
 exist any Lien upon any of its Property, whether now owned or hereafter
 acquired, except (collectively, "Permitted Liens"):

                  (i) Liens created pursuant to the Security Documents;

                  (ii) Liens in existence on the date hereof and listed in Part
         B of Schedule I (or, to the extent not meeting the minimum thresholds
         for required listing on Schedule I pursuant to Section 8.07, in an
         aggregate amount not exceeding $250,000);

                  (iii) Liens imposed by any Governmental Body for taxes,
         assessments or charges not yet due or that are being contested in good
         faith and by appropriate proceedings if, adequate reserves with respect
         thereto are maintained on the books of the Borrower in accordance with
         Canadian GAAP and Chilean GAAP;

                  (iv) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's or other like Liens arising in the ordinary course of
         business that are not overdue for a period of more than 30 days or that
         are being contested in good faith and by appropriate proceedings and
         Liens securing judgments but only to the extent for an amount and for a
         period not resulting in an Event of Default under clause (k) of Section
         9;

                  (v) pledges or deposits under worker's compensation,
         unemployment insurance and other social security legislation;

                  (vi) cash deposits to secure the performance of bids, trade
         contracts (other than for Indebtedness), leases, statutory obligations,
         surety and appeal bonds, performance bonds and other obligations of a
         like nature incurred in the ordinary course of business;

                  (vii) easements, rights-of-way. restrictions and other similar
         encumbrances incurred in the ordinary course of business and
         encumbrances consisting of zoning restrictions, easements, licenses,
         restrictions on the use of Property or minor imperfections in title
         thereto that, in the aggregate, are not material in amount, and that do

                                Common Agreement

<PAGE>

                                     - 49 -

          not in any case materially detract from the value of the Property
          subject thereto or interfere with the ordinary conduct of the business
          of the Borrower; and

                   (viii) Liens upon real and/or tangible personal Property
          acquired after the date hereof (by purchase, construction or
          otherwise) by the Borrower, each of which Liens either (A) existed on
          such Property before the time of its acquisition and was not created
          in anticipation thereof or (B) was created solely for the purpose of
          securing Indebtedness representing, or incurred to finance, refinance
          or refund, the cost (including the cost of construction) of such
          Property; provided that (i) no such Lien shall extend to or cover any
          Property of the Borrower other than the Property so acquired and
          improvements thereon and (ii) the principal amount of Indebtedness
          secured by any such Lien shall at no time exceed 80% of the fair
          market value (as determined in good faith by a Financial Officer of
          the Borrower) of such Property at the time it was acquired (by
          purchase, construction or otherwise).

                  (b) The Borrower will not create, incur or suffer to exist any
mandate on any VAT refund owed to the Borrower.

                  8.07 Indebtedness. The Borrower will not create, incur or
 suffer to exist any Indebtedness other than the following Indebtedness
 (collectively, "PERMITTED INDEBTEDNESS"):

                  (a) Indebtedness to the Senior Lenders under the Senior Loan
         Agreements;

                  (b) Indebtedness outstanding on the date hereof and listed in
         Part A of Schedule I (or, to the extent not meeting the minimum
         thresholds for required listing on such Schedule I pursuant to Section
         7.11, in an aggregate amount not exceeding $100,000);

                  (c) Subordinated Indebtedness: and

                  (d) additional Indebtedness of the Borrower (including,
         without limitation, Capital Lease Obligations and other Indebtedness
         secured by Liens permitted under Section 8.06(viii)) up to but not
         exceeding $500,000 at any one time outstanding; provided that at no
         time during the term of the Senior Loan Agreements may the Borrower
         Guarantee obligations of other Persons unless (i) issued in the
         ordinary course of business and (ii) in an aggregate amount not
         exceeding $100,000.

                  8.08 Investments. The Borrower will not make or permit to
remain outstanding any Investments except:

                  (a) investments outstanding on the date hereof;

                  (b) operating deposit accounts with banks;

                  (c) Permitted Investments;

                  (d) Hedging Agreements entered into in the ordinary course of
         the Borrower's financial planning and not for speculative purposes; and

                                Common Agreement

<PAGE>

                                     - 50 -

                   (e) investments consisting of security deposits with
          utilities and other like Persons made in the ordinary course of
          business.

                  8.09 Restricted Payments. The Borrower will not declare or
 make any Restricted Payment prior to the occurrence of Financial Completion.
 The Borrower may declare and make Restricted Payments within five days of each
 Quarterly Date after the occurrence of Financial Completion, in cash, subject
 to the satisfaction of each of the following conditions on the date of such
 Restricted Payment and after giving effect thereto:

                  (a) no Default (including, without limitation, any Default in
         connection with Section 8.10) shall have occurred and be continuing;

                  (b) such Restricted Payments are made from Surplus Cash not
         required to be deposited in the Cash Sweep Account in accordance with
         clause "tenth" of Section 4.03(b) hereof;

                  (c) the Debt Service Coverage Ratio for the preceding four
         quarterly periods, must be at least (i) 1.4, for any such Restricted
         Payment made during the period from Financial Completion to (but
         excluding) the fourth Principal Payment Date and (ii) 1.5, for any such
         Restricted Payment made during the period commencing on the fourth
         Principal Payment date to the date on which the Obligations are paid in
         full; and

                  (d) the Borrower shall have delivered to the Senior Lenders,
         at least five Business Days prior to the date of the proposed
         Restricted Payment, a certificate of a Financial Officer of the
         Borrower setting forth computations in reasonable detail demonstrating
         satisfaction of the foregoing conditions as at the date of such
         certificate.

                  8.10 Certain Financial Covenants.

                  (a) Current Ratio. The Borrower will not permit the ratio of
its current assets (excluding prepaid expenses) to its current liabilities
(including current maturities of Long-Term Debt) to be less than 1 to 1 when
calculated on March 31, 2001 and each Quarterly Date thereafter. For purposes
hereof, the terms "current assets" and "current liabilities" shall have the
respective meanings assigned to them by Canadian GAAP.

                  (b) Debt Service Coverage Ratio. The Borrower will not permit
the Debt Service Coverage Ratio to be less than (i) 1.15 to 1 when calculated on
June 30, 2001 and each following Quarterly Date to and including December 31,
2002 and (ii) 1.20 to 1 when calculated on March 31, 2003 and each Quarterly
Date thereafter.

                  (c) EBITDA. Commencing on the date hereof and calculated on
each Quarterly Date thereafter, the Borrower will not permit its EBITDA for the
period of two consecutive fiscal quarters ending on the date indicated under the
"Quarter Ending" column of Schedule IV to fall below the amount indicated in the
"Covenant" column corresponding to such date in Schedule IV.

                                Common Agreement

<PAGE>

                                     - 51 -

                  (d) Receivables Turnover. Commencing on the date hereof and
calculated on each Quarterly Date thereafter and for the immediately preceding
12 months, the Borrower will not permit its Receivables Turnover to be less than
4 to 1.

                  (e) Total Debt to Equity. Commencing on the date hereof and
calculated on each Quarterly Date thereafter, the Borrower shall not permit the
ratio of Total Debt to Equity to be more than 1 to 1.

                  (f) Recurring Revenues. Commencing on the date hereof, the
Borrower will maintain at least the respective Recurring Revenues on each of the
respective Quarterly Dates set out in Schedule V.

                  (g) Maintenance Costs. The Borrower shall not incur
Maintenance Costs in excess of $144,000 in any calendar year less the amount of
insurance proceeds received with respect to any corresponding damage and applied
to repair or replace all or part of the Project.

                  8.11 Subordinated Indebtedness. Other than as provided in
Section 8.13 or unless made from the proceeds of a Restricted Payment pursuant
to Section 8.09, the Borrower will not purchase, redeem, retire or otherwise
acquire for value, or set apart any money for a sinking, defeasance or other
analogous fund for the purchase, redemption, retirement or other acquisition of,
or make any voluntary payment or prepayment of the principal of or interest on,
or any other amount owing in respect of, any Subordinated Indebtedness, until
all of the Borrower's Obligations have been paid in full. The Borrower will not
consent to any modification, supplement or waiver of any of the provisions of
any agreement, instrument or other document evidencing or relating to
Subordinated Indebtedness without the prior consent of the Senior Lenders.

                  8.12 Lines of Business. The Borrower will not engage, or incur
expenditures for fixed and other non-current assets, in any line or lines of
business activity other than the business of the Project.

                  8.13 Use of Proceeds.

                  (a) The Borrower will use the proceeds of the Senior Loans,
within 180 days after the disbursement thereof, solely to:

                  (i) finance Project Costs incurred since November 23, 1998;

                  (ii) repay and/or repurchase, as the case may be, the Initial
         Equity Investment made by SRT to the Borrower in an amount equal to (A)
         the aggregate amount (in Dollars) of SRT's equity investment in the
         Borrower as of such repayment date less (B) $52,000,000; provided that
         the aggregate amount paid to SRT pursuant to this clause (a)(ii) shall
         at no time while any Senior Loan remains outstanding exceed
         $20,000,000;

                  (iii) pay the fees and expenses incurred by or on behalf of
         the Borrower in connection with the development of the Project and the
         consummation of the transactions

                                Common Agreement

<PAGE>

                                      -52-

         contemplated by the Transaction Documents, including financial,
         accounting, legal, surveying and consulting fees;

                  (iv) pay taxes of the Borrower incurred in connection with the
         Project prior to the Commitment Termination Date (as defined in the IDB
         Loan Agreement);

                  (v) fund the Debt Service Reserve Account;

                  (vi) pay insurance premiums with respect to the insurance and
         reinsurance required pursuant to Section 8.04; and

                  (vii) pay any interest to the Senior Lenders pursuant to the
         Senior Loan Agreements accruing prior to the earlier of the Completion
         of Network Construction and the Commitment Termination Date (as defined
         in the IDB Loan Agreement).

                  (b) In addition to the permitted uses of proceeds described in
 the preceding clause (a), the Borrower will use the proceeds of the IDB Loan
 solely to:

                  (i) prepay from the initial disbursement thereof, the EDC
          Loans in an amount equal to the aggregate outstanding principal amount
          of the EDC Loans in excess of $25,000,000; and

                  (ii) pay or reimburse only those expenditures originating in
         the territories of IDB member countries (as listed in Schedule III,
         such member countries of IDB, collectively, the "IDB Members") or for
         goods produced in or services supplied from such territories.

                  (c) Without limiting or otherwise affecting the obligations of
the Borrower hereunder or under the other Transaction Documents, the Senior
Lenders shall not be bound to monitor or verify the application or utilization
of any part of the proceeds of the Senior Loans.

                  8.14 Subsidiaries. The Borrower will not have any
Subsidiaries, nor enter into any Joint Venture, at any time during the term of
this Agreement.

                  8.15 Implementation of the Project. The Borrower shall design,
construct, install, operate and monitor the Project pursuant to and materially
in accordance with prudent industry standards and practices and in accordance
with the Agreed Financial Model, the Business Plan, the Concessions and the
terms of this Agreement. The Borrower shall not, without the prior written
consent of the Senior Lenders, amend or modify the Agreed Financial Model, the
Business Plan or the Concessions.

                  8.16 Project Documents.

                  (a) The Borrower shall: (i) perform and observe its covenants
and obligations contained in each of the Project Documents to which it is a
party, (ii) enforce against the other party to each Project Document each
covenant or obligation of such Project Document in accordance with its terms and
(iii) notify the Senior Lenders of any proposed amendment, termination,
modification or waiver of any Project Document.

                                Common Agreement

<PAGE>

                                     - 53 -

                  (b) The Borrower shall not, without the prior written consent
of the Senior Lenders: (i) cancel or terminate any Project Document to which it
is a party or consent to or accept any cancellation or termination thereof if
the consent of the Borrower is required for such cancellation or termination
(other than expiration in accordance with its terms), (ii) amend any material
provision of, waive any default under, or breach of, any Project Document or
waive, fail to enforce, forgive, compromise, settle, adjust or release any
right, interest or entitlement, howsoever arising, under, or in respect of, any
Project Document or in any way vary, or agree to the variation of, any provision
of such Project Document or of the performance of any covenant or obligation by
any other Person under any Project Document, (iii) petition, request or take any
other legal or administrative action that seeks, or may reasonably be expected,
to materially impair any Project Document, or (iv) consent or accept the
transfer or assignment of any of the Borrower's rights or obligations under any
Project Document.

                  (c) Promptly after the execution and delivery thereof, the
Borrower shall furnish the Senior Lenders with certified copies of (i) all
amendments, supplements or modifications of any Project Document and (ii) all
Project Documents entered into after the date hereof.

                  (d) Without the prior consent of the Senior Lenders, the
Borrower shall not: (i) enter into any contract or agreement which could be
characterized as a lease in the capacity as a lessee thereunder, unless such
contract or agreement is a Capital Lease Obligation or an operating lease (A)
undertaken in the ordinary course of business of a telephone service operator,
(B) not relating to any Network Assets, and (C) when taken together with all
such contracts and agreements, is in compliance with Section 8.07(e), or (ii)
enter into any contract or agreement pursuant to which a material portion of the
Borrower's operations are managed by any third party, other than as contemplated
by the Operating Contracts or pursuant to the Technical Services Agreement.

                  8.17 Equity. The Borrower shall not take any actions which
would have the effect of reducing its Equity from that existing as of the date
hereof, except as contemplated herein and in the Project Funds Agreement.

                  8.18 Environmental Matters.

                  (a) The Borrower, the Project, the Properties, and any
Contractor (in connection with such Contractor's performance relating to the
Project) shall comply with all Environmental Requirements.

                  (b) The Borrower shall consult and obtain the approval of the
Senior Lenders in connection with any changes in the EHSM Plan.

                  (c) The Borrower shall deliver to the Senior Lenders (i)
promptly upon obtaining knowledge of (A) any fact, circumstance, condition or
occurrence that could form the basis of an Environmental Claim or non-compliance
with any Environmental Requirement arising with respect to the development,
construction, ownership and operation of the Project against the Project or any
Environmental Party or (B) any pending or threatened Environmental Claim or
Environmental Requirements non-compliance arising with respect to the
development, construction, ownership and operation of the Project against the
Project or any Environmental

                                Common Agreement

<PAGE>

                                     - 54 -

Party, a notice thereof describing the same in reasonable detail and, together
with such notice or as soon thereafter as possible, a description of the action
that the Borrower has taken or proposes to take with respect thereto and,
thereafter, from time to time such detailed reports with respect thereto as the
Senior Lenders may reasonably request and (ii) promptly upon their becoming
available, copies of all written communications with any Government Authority
relating to any Environmental Law or Environmental Claim arising out of the
development, construction, ownership and operation of the Project.

                  (d) The Borrower shall implement ongoing, public disclosure
and consultation activities to ensure that the local public is aware of Project
related environmental, social, health and safety issues.

                  (e) The Borrower must prepare and submit an Environmental and
Social Compliance Report, in form and content acceptable to IDB, which must be
received by IDB within 60 calendar days after the close of each calendar year.

                  (f) At any time, upon request from any Senior Lenders, permit
such Senior Lender or an independent consultant engaged by any Senior Lender, at
the expense of the Borrower, to perform an independent environmental, health and
safety audit of the Project and associated operations to confirm such compliance
with the Environmental Requirements. The audit shall result in the preparation
of a written report in form and substance satisfactory to the Senior Lenders and
including a plan to correct any identified non-compliances. The Borrower shall
be obligated to ensure that all identified deficiencies that constitute material
non-compliance with any Environmental Requirements shall be corrected within a
time schedule acceptable to the Senior Lenders.

                  8.19 Transaction with Affiliates or Joint Ventures. Enter into
any transaction, including without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate or
Joint Venture or any direct or indirect shareholder unless such transaction is
(a) in the ordinary course of business and (b) and upon terms no less favorable
to the Borrower than it would obtain in a comparable arm's-length transaction
with a Person which is not an Affiliate, Joint Venture or any direct or indirect
shareholder.

                  8.20 Financial Completion. On or prior to January 31, 2003,
the Borrower shall have demonstrated that Financial Completion occurred no later
than December 31, 2002. "Financial Completion" shall be deemed to have occurred
on the first date when each of the following statements shall be true, in each
case, to the satisfaction of the Senior Lenders:

                  (a) no Default shall have occurred and be continuing
         (including, without limitation, any Default in connection with Section
         8.10 or in connection with Section 9(d) for failure to take any actions
         required pursuant to the Security Documents to perfect the security
         interests intended to be granted to the Senior Lenders in connection
         with any property or assets of the Borrower acquired after the Closing
         Date);

                  (b) the Borrower shall have paid all Project Costs;

                  (c) the Completion of Network Construction shall have
         occurred;

                                Common Agreement

<PAGE>

                                     - 55 -

                  (d) the Debt Service Reserve Requirement shall have been
         deposited into the Debt Service Reserve Account;

                  (e) all equity contributions shall have been made to complete
         the Agreed Financial Plan and the required debt/equity ratio is at the
         stated level;

                  (f) the Adjusted DSCR for two consecutive semi-annual periods
         occurring after the Completion of Network Construction is greater than
         1.4; and

                  (g) the Borrower shall have delivered to the Senior Lenders,
         at least five Business Days prior to the proposed date of Financial
         Completion, a certificate of a Financial Officer of the Borrower
         setting forth computations or other evidence in reasonable detail
         demonstrating satisfaction of the foregoing conditions as at the date
         of such certificate.

                  8.21 Security. From time to time, execute, acknowledge and
deliver or cause to be executed, acknowledged or delivered such further
instruments as may reasonably be requested by the Senior Lenders for perfecting,
or maintaining in full force and effect the perfection of, the security
interests created by the Security Documents or for re-registering the Security
Documents or otherwise to comply with the Borrower's obligations under the
Security Documents.

                  Section 9. Events of Default. If one or more of the following
events (herein called "Events of Default") shall occur and be continuing:

                  (a) the Borrower shall default in the payment of any principal
         of any Senior Loans when due (whether at stated maturity or at
         mandatory or optional prepayment) and such default shall have continued
         unremedied for three or more days;

                  (b) the Borrower shall default in the payment of any interest
         on any Senior Loans, any fee or any other amount (other than an amount
         referred to in clause (a) of this Section 9) payable by it hereunder or
         under any other Financing Document when due and such default shall have
         continued unremedied for three or more days;

                  (c) any representation, warranty or certification made or
         deemed made herein or in any other Transaction Document (or in any
         modification or supplement hereto or thereto) by any Transaction Party
         or any certificate furnished to the Senior Lenders pursuant to the
         provisions hereof or thereof, shall prove to have been false or
         misleading as of the time made or furnished in any material respect;

                  (d) the Borrower shall default in the performance of any of
         its obligations under any of Sections 8.02, 8.03(a), 8.05, 8.06, 8.07,
         8.08, 8.09, 8.10, 8.11, 8.14, 8.15 or 8.17 the Borrower shall default
         in the performance of any of its obligations under any Security
         Document to which it is a party; or SRT shall default in the
         performance of any of its obligations under the Project Funds Agreement
         or the Direct Agreement; or any Transaction Party (other than the
         Borrower) shall default in the performance of its obligations under any
         Security Document to which it is a party or under the Transfer
         Restrictions Agreement;

                                Common Agreement

<PAGE>

                                     - 56 -

                  (e) any Transaction Party shall fail to observe or perform any
         covenant, condition or agreement contained in this Agreement (other
         than those specified in clause (a), (b) or (d) of this Section 9) or
         any other Transaction Document and such failure shall continue
         unremedied for a period of 30 or more days;

                  (f) any Transaction Party (other than SRT) shall default in
         the payment when due of any principal of or interest on any of its
         other Indebtedness in an aggregate amount equal to or greater than
         $500,000; or any Transaction Party shall default in the payment when
         due of any amount under any Hedging Agreement;

                  (g) any event specified in any note, agreement, indenture or
         other document evidencing or relating to any other Indebtedness
         aggregating $500,000 or more of any Transaction Party (other than SRT)
         shall occur if the effect of such event is to cause, or (with the
         giving of any notice or the lapse of time or both) to permit the holder
         or holders of such Indebtedness (or a trustee or agent on behalf of
         such holder or holders) to cause, such Indebtedness to become due, or
         to be prepaid in full (whether by redemption, purchase, offer to
         purchase or otherwise), prior to its stated maturity or to have the
         interest rate thereon reset to a level so that securities evidencing
         such Indebtedness trade at a level specified in relation to the par
         value thereof; or any event specified in any Hedging Agreement to which
         any Transaction Party (other than SRT) is a party shall occur if the
         effect of such event is to cause, or (with the giving of any notice or
         the lapse of time or both) to permit, termination or liquidation
         payment or payments to become due or at any time prior to the
         termination of the Project Funds Agreement and the Performance
         Undertaking, the holder or holders of any Indebtedness aggregating
         $500,000 or more of SRT (or a trustee or agent on behalf of such holder
         or holders) shall have declared such Indebtedness to become due or to
         be prepaid in full (whether by redemption, purchase, offer to purchase
         or otherwise), prior to its stated maturity or to have the interest
         rate thereon reset to a level so that securities evidencing such
         Indebtedness trade at a level specified in relation to the par value
         thereof; or, at any time prior to the termination of the Project Funds
         Agreement and the Performance Undertaking, any event specified in any
         Hedging Agreement to which SRT is a party shall occur if the effect of
         such event is to cause termination or liquidation payment or payments
         to become due;

                  (h) a proceeding or case shall be commenced, without the
         application or consent of any Transaction Party, in any court of
         competent jurisdiction, seeking (i) its reorganization, liquidation,
         dissolution, arrangement or winding-up, or the composition or
         readjustment of its debts, (ii) the appointment of a receiver,
         custodian, trustee, examiner, liquidator or the like of any Transaction
         Party or of all or any substantial part of its Property, (iii) similar
         relief in respect of any Transaction Party under any law relating to
         bankruptcy, insolvency, reorganization, winding-up, or composition or
         adjustment of debts, and such proceeding or case shall continue
         undismissed, or an order, judgment or decree approving or ordering any
         of the foregoing shall be entered and continue unstayed and in effect,
         for a period of 60 or more days, or (iv) the equivalent of any of the
         foregoing under the laws of Chile. Canada or the British Virgin
         Islands;

                                Common Agreement

<PAGE>

                                     - 57 -

                  (i) any Transaction Party shall (i) apply for or consent to
         the appointment of, or the taking of possession by, a receiver,
         custodian, trustee, examiner or liquidator of itself or of all or a
         substantial part of its Property, (ii) make a general assignment for
         the benefit of its creditors, (iii) file a petition seeking to take
         advantage of any law relating to bankruptcy, insolvency,
         reorganization, liquidation, dissolution, arrangement or winding-up, or
         composition or readjustment of debts, (iv) take any corporate action
         for the purpose of effecting any of the foregoing or (v) do the
         equivalent of any of the foregoing under the laws of Chile, Canada or
         the British Virgin Islands;

                  (j) any Transaction Party shall admit in writing its
         inability to, or be generally unable to, pay its debts as such debts
         become due;

                  (k) a final judgment or judgments for the payment of money
         shall be rendered by one or more courts, administrative tribunals or
         other bodies having jurisdiction against any Transaction Party other
         than SRT in an aggregate amount in excess of $500,000 or against SRT in
         an aggregate amount in excess of $1,000,000 and the same shall not be
         discharged (or provision shall not be made for such discharge), or a
         stay of execution thereof shall not be procured, within 30 days from
         the date of entry thereof and such Transaction Party shall not, within
         such period of 30 days, or such longer period during which execution of
         the same shall have been stayed, appeal therefrom and cause the
         execution thereof to be stayed during such appeal, or any action shall
         be legally taken by a judgment creditor to attach or levy upon any
         assets of such Transaction Party to enforce any such judgment;

                  (l) any license, consent, authorization, registration or
         approval at any time necessary to enable any Transaction Party to
         comply with any of its obligations under this Agreement or any other
         Transaction Document shall be revoked, withdrawn or withheld or shall
         be modified or amended in a manner prejudicial, in the opinion of any
         Senior Lender, to the interests of such Senior Lender hereunder; or the
         governments of Chile, Canada or the British Virgin Islands, or any
         agency or political subdivision thereof, shall promulgate or declare
         effective any law, rule or regulation that, in the opinion of any
         Senior Lender, could have a Borrower Material Adverse Effect or an SRT
         Material Adverse Effect;

                  (m) any Governmental Body shall take any action to condemn,
         nationalize or appropriate any substantial portion of the Property of
         any Transaction Party (either with or without payment of compensation)
         or shall take any action that, in the opinion of any Senior Lender,
         adversely affects the ability of any Transaction Party to perform its
         obligations under this Agreement or any other Transaction Document; or
         any Transaction Party shall be prevented from exercising normal control
         over all or a substantial part of its Property (and the same shall
         continue for 15 or more days);

                  (n) Chile or any competent authority thereof shall declare a
         moratorium on the payment of indebtedness by Chile or any governmental
         agency or authority thereof or corporations therein, or Chile shall
         cease to be a member in good standing of the International Monetary
         Fund or shall cease to be eligible to utilize the resources of the

                                Common Agreement

<PAGE>

                                     - 58 -

         International Monetary Fund under the Articles of Agreement thereof, or
         the international monetary reserves of Chile shall become subject to
         any Lien;

                  (o) the Liens created by the Security Documents shall at any
         time not constitute a valid and perfected Lien on the collateral
         intended to be covered thereby (to the extent perfection by filing,
         registration, recordation or possession is required herein or therein)
         in favour of either Senior Lender or both Senior Lenders, as the case
         may be, free and clear of all other Liens (other than Liens permitted
         under Section 8.06 or under the respective Security Documents), or,
         except for expiration in accordance with its terms, any of the Security
         Documents shall for whatever reason be terminated or cease to be in
         full force and effect except by any actions of the Senior Lenders, or
         the enforceability thereof shall be contested by any Transaction Party
         thereto;

                  (p) the decision of the Borrower's board of directors or
         shareholders (at a shareholders meeting) to (i) cease operation of the
         Project for any period of time, or (ii) suspend the construction of the
         Project for a period of 15 days or more;

                  (q) SUBTEL terminates, suspends, expropriates or amends one or
         more of the Concessions in a manner that, in the opinion of the Senior
         Lenders, could have a Borrower Material Adverse Effect; or SUBTEL gives
         notice of its intention to terminate one or more of the Concessions
         which in the opinion of the Senior Lenders, could have a Borrower
         Material Adverse Effect;

                  (r) one or more of the Interconnection Agreements terminates
         or expires without renewal and are not renewed or, prior to termination
         or expiry have not been replaced by one or more new agreements in form
         and substance substantially similar to, and providing for comparable
         scope and quality of service as, such terminated or expired
         Interconnection Agreement(s); or one or more Interconnection Agreements
         are terminated, amended or renewed in a manner that, in the opinion of
         any Senior Lender, could have a Borrower Material Adverse Effect;

                  (s) either (i) this Agreement or any Transaction Document not
         otherwise referred to in clauses (q) or (r) above, except as
         contemplated thereby, shall cease to be in full force and effect or
         (ii) any Transaction Party shall deny any further liability or
         obligations under this Agreement or any other Transaction Document to
         which it is a party; or

                  (t) SRT at any time ceases to own, directly or indirectly, at
         least 80% of the voting capital stock of, or other ownership interests
         in, the Borrower;

                  (u) Completion of Network Construction shall not have occurred
         by the Date Certain;

                  (v) the Borrower shall have ceased all or substantially all
         construction activities of the Project without interruption for 90 days
         and shall have declared its intention that such activities not be
         resumed either by (i) the Borrower's failure to deliver within 30 days
         of notice from any Senior Lender a certificate to the effect that the
         Borrower intends to cause all or substantially all such construction or
         production activities to resume as

                                Common Agreement

<PAGE>

                                     - 59 -

         soon as is commercially practicable or (ii) the Borrower's failure to
         resume activities within 90 days following delivery of such
         certificate;

                  (w) the total loss, destruction or condemnation of the
         Project; or

                  (x) any Transaction Party or Contractor (in connection with
         such Contractor's performance relating to the Project) shall fail to
         comply in any material respect with any Environmental Requirement and
         such failure shall continue unremedied for a period of 30 or more days;

THEREUPON: (1) in the case of an Event of Default other than one referred to in
clause (h) or (i) of this Section 9 with respect to the Borrower, the Senior
Lenders may, by notice to the Borrower, terminate the Commitment (as defined in
each Senior Loan Agreement) and they may thereupon terminate, and/or declare the
principal amount then outstanding of, and the accrued interest on, the Senior
Loans and all other amounts payable by the Borrower under the Senior Loan
Agreements and under the Notes (including, without limitation, any amounts
payable under Section 5.04 of each Senior Loan Agreement) to be forthwith due
and payable, whereupon such amounts shall be immediately due and payable without
presentment, demand, protest or other formalities of any kind, all of which are
hereby expressly waived by the Borrower; and (2) in the case of the occurrence
of an Event of Default referred to in clause (h) or (i) of this Section 9 with
respect to the Borrower, the Commitments (as defined in each Senior Loan
Agreement) shall automatically be terminated and the principal amount then
outstanding of, and the accrued interest on, the Senior Loans and all other
amounts payable by the Borrower under the Senior Loan Agreements and under the
Notes (including, without limitation, any amounts payable under Section 5.04 of
each Senior Loan Agreement) shall automatically become immediately due and
payable without presentment, demand, protest or other formalities of any kind,
all of which are hereby expressly waived by the Borrower.

                  Section 10. Miscellaneous.

                  10.01 Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, any notice, claim,
request, demand, consent designation, direction, instruction, certificate,
report or other communication to be given hereunder shall be given in writing in
the English language (or accompanied by an accurate English language translation
upon which the recipient shall have the right to rely for all purposes) and will
be deemed duly given when (i) personally delivered, (ii) sent by facsimile
transmission (but only if, immediately after the transmission, the sender's
facsimile machine records in writing the correct answer back) or (iii) ten days
have elapsed after mailing by certified or registered mail, postage prepaid, in
each case addressed to a party at its address or facsimile transmission number
as set forth below or to another address or facsimile number of which that party
has given notice in accordance herewith. Notice of address or facsimile number
change shall be effective only upon receipt:

                  (a) if to the Borrower, to it at Av. Vicacura 2771, Oficina
         405-B, Las Condes, Santiago, Chile, Attention of Mario Andrade
         (Telecopy No. 562-236-5776, Telephone No. 562-236-5656: and

                                Common Agreement

<PAGE>

                                     - 60 -

                  (b) if to the Senior Lenders, (i) to Export Development
         Corporation, at 151 O'Connor Street, Ottawa, Ontario, Canada K1A 1K3,
         Attention of the Loans Operations Team (Telecopy No. 613-598-2514,
         Telephone No. 613-598-2500) and (ii) to Inter-American Development
         Bank, Private Sector Department, at 1300 New York Avenue, N.W.,
         Washington D.C., 20577, Attention Loan Administration Unit, (Telecopy
         No. 202-623-3639).

                  10.02 Waiver. No failure on the part of the Senior Lenders to
exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or the Financing Documents
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege under this Agreement or the Financing Documents
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The remedies provided herein are cumulative and not
exclusive of any remedies provided by law.

                   The Borrower irrevocably waives, to the fullest extent
 permitted by applicable law, any claim that any action or proceeding commenced
 by the Senior Lenders relating in any way to this Agreement should be dismissed
 or stayed by reason, or pending the resolution, of any action or proceeding
 commenced by the Borrower relating in any way to this Agreement whether or not
 commenced earlier. To the fullest extent permitted by applicable law, the
 Borrower shall take all measures necessary for any such action or proceeding
 commenced by the Senior Lenders to proceed to judgment prior to the entry of
 judgment in any such action or proceeding commenced by the Borrower.

                  10.3 Amendments, Etc. No provision of this Agreement or of the
Senior Loan Agreements may be modified or supplemented except by an instrument
in writing signed by the Borrower and the Senior Lenders.

                  10.4 Expenses. The Borrower agrees to pay or reimburse the
Senior Lenders for: (a) all reasonable out-of-pocket costs and expenses of the
Senior Lenders (including, without limitation, the reasonable fees and expenses
of legal counsels and consultants to the Senior Lenders) in connection with (i)
the negotiation, preparation, registration, execution and delivery of this
Agreement and the other Financing Documents and the making of the Senior Loans
under the Senior Loan Agreements and the syndication on monitoring thereof and
(ii) the negotiation or preparation of any modification, supplement or waiver of
any of the terms of this Agreement or any of the other Financing Documents
(whether or not consummated); (b) all reasonable out-of-pocket costs and
expenses of the Senior Lenders (including, without limitation, the reasonable
fees and expenses of legal counsel) in connection with (i) any Default and any
enforcement or collection proceedings resulting therefrom, including, without
limitation, all manner of participation in or other involvement with (x)
bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation
proceedings, (y) judicial or regulatory proceedings and (z) workout,
restructuring or other negotiations or proceedings (whether or not the workout,
restructuring or transaction contemplated thereby is consummated) and (ii) the
enforcement of this Section 10.04; and (c) all transfer, stamp, documentary or
other similar taxes, assessments or charges levied by any governmental or
revenue authority in respect of this Agreement or any of the other Financing
Documents or any other document referred to herein or therein and all costs,
expenses, taxes, assessments and other charges incurred in connection with any
filing,

                                Common Agreement

<PAGE>

                                     - 61 -

registration, recording or perfection of any security interest contemplated by
any Security Document or any other document referred to therein.

                  The Borrower hereby agrees to indemnify the Senior Lenders and
their directors, officers, employees, attorneys and agents from, and hold each
of them harmless against, any and all losses, liabilities, claims, damages or
expenses incurred by any of them arising out of or by reason of any
investigation or litigation or other proceedings (including any threatened
investigation or litigation or other proceedings) relating to the Senior Loans
or any actual or proposed use by the Borrower of the proceeds of any of the
Senior Loans, including, without limitation, the reasonable fees and
disbursements of counsel incurred in connection with any such investigation or
litigation or other proceedings (but excluding any such losses, liabilities,
claims, damages or expenses incurred by reason of the gross negligence or
willful misconduct of the Person to be indemnified).

                  10.05 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. The Borrower may not assign any of its rights
or obligations hereunder or under the other Transaction Documents without the
prior consent of the Senior Lenders and any such assignment in contravention of
the terms hereof shall be null and void. Any Senior Lender may transfer, assign
or grant its rights hereunder in connection with an assignment or transfer of
all or any part of its interest in its Senior Loans in accordance with the
Senior Loan Agreement to which it is a party; provided that any such assignee
has agreed to be bound by the terms of this Agreement, such Senior Loan
Agreement and the Intercreditor Agreement.

                  10.06 Survival. The obligations of the Borrower under Sections
5.01, 5.04 and 5.05 of each Senior Loan Agreement and Section 10.04 hereof shall
survive the repayment of the Senior Loans and the termination of the
Commitments. In addition, each representation and warranty made, or deemed to be
made by a notice of any Senior Loan, herein or pursuant hereto shall survive the
making of such representation and warranty, and the Senior Lenders shall not be
deemed to have waived, by reason of making any Senior Loan hereunder, any
Default that may arise by reason of such representation or warranty proving to
have been false or misleading, notwithstanding that the Senior Lenders may have
had notice or knowledge or reason to believe that such representation or
warranty was false or misleading at the time such Senior Loan was made.

                  10.07 Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement; provided that original signature pages
of each party hereto are delivered to each other party hereto within five
Business Days.

                  10.08 Governing Law; Jurisdiction; Service of Process; Etc.

                  (a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                                Common Agreement

<PAGE>

                                     - 62 -

                  (b) Submission to Jurisdiction. The Borrower hereby agrees
that any suit, action or proceeding with respect to this Agreement, the other
Transaction Documents or any judgment entered by any court in respect thereof
may be brought by any Senior Lender in the courts of the Province of Ontario,
Canada and in the United States District Court for the Southern District of New
York, in the Supreme Court of the State of New York sitting in New York County
(including its Appellate Division), or in any other appellate court in the State
of New York, as the party commencing such suit, action or proceeding may elect
in its sole discretion; and the Borrower hereby irrevocably submits to the
jurisdiction of such courts for the purpose of any such suit, action, proceeding
or judgment. Each party hereto further submits, for the purpose of any such
suit, action, proceeding or judgment brought or rendered against it, to the
appropriate courts of the jurisdiction of its domicile.

                  (c) Process Agent. The Borrower hereby agrees that service of
all writs, process and summonses in any such suit, action or proceeding brought
in the Province of Ontario or the State of New York may be made upon CT
Corporation, presently located at 111 Eighth Avenue, New York, New York 10011,
U.S.A. (the "Process Agent"), and the Borrower hereby confirms and agrees that
the Process Agent has been duly and irrevocably appointed as its agent and true
and lawful attorney-in-fact in its name, place and stead to accept such service
of any and all such writs, process and summonses, and agrees that the failure of
the Process Agent to give any notice of any such service of process to the
Borrower shall not impair or affect the validity of such service or of any
judgment based thereon. The Borrower hereby further irrevocably consents to the
service of process in any suit, action or proceeding in such courts by the
mailing thereof by the Senior Lender by registered or certified mail, postage
prepaid, at its address set forth beneath its signature hereto.

                  (d) Other Service. Nothing herein shall in any way be deemed
to limit the ability of any Senior Lender to serve any such writs, process or
summonses in any other manner permitted by applicable law or to obtain
jurisdiction over the Borrower in such other jurisdictions, and in such manner,
as may be permitted by applicable law.

                  (e) Waiver of Venue. The Borrower hereby irrevocably waives
any objection that it may now or hereafter have to the laying of the venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Transaction Document brought by any Senior Lender in the courts of the
Province of Ontario, Canada and in the Supreme Court of the State of New York,
County of New York or in the United States District Court for the Southern
District of New York, and hereby further irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.

                  10.9 WAIVER OF JURY TRIAL. THE BORROWER HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY.

                  10.10 No Immunity. To the extent that the Borrower may be or
become entitled, in any jurisdiction in which judicial proceedings may at any
time be commenced with respect to

                                Common Agreement

<PAGE>

                                     - 63 -

this Agreement, the Notes or any other Financing Document, to claim for itself
or its Properties or revenues any immunity from suit, court jurisdiction,
attachment prior to judgment, attachment in aid of execution of a judgment,
execution of a judgment or from any other legal process or remedy relating to
its obligations under this Agreement, the Notes or any other Financing Document,
and to the extent that in any such jurisdiction there may be attributed such an
immunity (whether or not claimed), the Borrower hereby irrevocably agrees not to
claim and hereby irrevocably waives such immunity to the fullest extent
permitted by the laws of such jurisdiction. The Borrower agrees that the waiver
set forth above shall have the fullest extent permitted under the Foreign
Sovereign Immunities Act of 1976 of the United States of America and be intended
to be irrevocable and not subject to withdrawal for purposes of such Act.

                  10.11 Judgment Currency. This Agreement and the Senior Loan
Agreements represent an international loan transaction in which the
specification of Dollars and payment in New York City is of the essence, and the
obligations of the Borrower under the Financing Documents to make payment to (or
for account of) the Senior Lenders in Dollars shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any other currency or in another place except to the extent that
such tender or recovery results in the effective receipt by the Senior Lenders
in New York City of the full amount of Dollars payable to the Senior Lenders
under this Agreement and the Senior Loan Agreements. If for the purpose of
obtaining judgment in any court it is necessary to convert a sum due hereunder
in Dollars into another currency (in this Section 10.11 called the "judgment
currency"), the rate of exchange that shall be applied shall be that at which in
accordance with normal banking procedures the Senior Lenders could purchase such
Dollars with the judgment currency on the Business Day next preceding the day on
which such judgment is rendered. The obligations of the Borrower in respect of
any such sum due from it to the Senior Lenders hereunder or under any other
Financing Document shall, notwithstanding the rate of exchange actually applied
in rendering such judgment, be discharged only to the extent that on the
Business Day following receipt by the Senior Lenders of any sum adjudged to be
due hereunder in the judgment currency the Senior Lenders may in accordance with
normal banking procedures purchase and transfer Dollars to New York City with
the amount of the judgment currency so adjudged to be due; and the Borrower
hereby, as a separate obligation and notwithstanding any such judgment, agrees
to indemnify the Senior Lenders against, and to pay the Senior Lenders on
demand, in Dollars, the amount (if any) by which the sum originally due to the
Senior Lenders in Dollars hereunder exceeds the amount of the Dollars so
purchased and transferred.

                  10.12 Use of English Language. This Agreement has been
negotiated and executed in the English language. All certificates, reports,
notices and other documents and communications given or delivered pursuant to
this Agreement (including, without limitation, any modifications or supplements
hereto) shall be in the English language, or accompanied by a certified English
translation thereof. Except in the case of laws or official communications of
Chile, in the case of any document originally issued in a language other than
English, the English language version of any such document shall for purposes of
this Agreement, and absent manifest error, control the meaning of the matters
set forth therein.

                  10.13 Severability. If any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby. If any provisions of this Agreement shall be invalid,

                                Common Agreement

<PAGE>

                                     - 64 -

illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of such provision shall not in any way be affected or impaired in
any other jurisdiction thereby.

                                Common Agreement

<PAGE>

                   IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered as of the day and year first above
written.

                                           COMUNICACION Y TELEFONIA RURAL S.A.

                                           By: /s/ D'Arcy J. Leddy
                                              ---------------------------------
                                              Name:  D'Arcy J. Leddy
                                              Title: Director

                                Common Agreement

<PAGE>

                                           EXPORT DEVELOPMENT CORPORATION

                                           By: /s/ Bruce Dunlop
                                              ---------------------------------
                                              Name:  Bruce Dunlop
                                              Title: Financial Services Manager

                                           EXPORT DEVELOPMENT CORPORATION

                                           By: /s/ Brian Craig
                                              ---------------------------------
                                               Name:  Brian Craig
                                               Title: Financial Services Manager

                                Common Agreement

<PAGE>

                                           INTER-AMERICAN DEVELOPMENT BANK

                                           By: /s/ Bernardo Frydman
                                              ---------------------------------
                                               Name:  Bernardo Frydman
                                               Title: Deputy Manager, Private
                                               Sector Department

                                Common Agreement<PAGE>

                                                                 EXHIBIT 10.10.1

                                                           EXECUTION COUNTERPART

                                                            Loan No.: 1227/OC-CH

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

                                 LOAN AGREEMENT

                                   dated as of

                                December 22, 1999

                                     between

                      COMUNICACION Y TELEFONIA RURAL S.A.

                                       and

                         INTER-AMERICAN DEVELOPMENT BANK

                                   $25,000,000

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

<PAGE>

                                TABLE OF CONTENTS

                  This Table of Contents is not part of the Agreement to which
it is attached but is inserted for convenience of reference only.

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>
Section 1. Definitions and Accounting Matters............................     1
       1.01      Certain Defined Terms...................................     1
       1.02      Principles of Construction..............................     4

Section 2. The Commitment, Loan, the Notes and Prepayments...............     5
       2.01      Loan....................................................     5
       2.02      Disbursements...........................................     5
       2.03      Changes of the Commitment...............................     5
       2.04      Fees....................................................     6
       2.05      The Notes...............................................     6
       2.06      Optional and Mandatory Prepayments......................     7
       2.07      Premium for Prepayment of Fixed-Rate Loan...............     7

Section 3. Payments of Principal and Interest............................     7
       3.01      Repayment of Loan.......................................     7
       3.02      Interest................................................     8
       3.03      Late Charges............................................     9
       3.04      Maximum Interest Rate...................................     9
       3.05      Fixed Rate Option.......................................    10

Section 4. Payments; Computations; Etc...................................    10
       4.01      Payments................................................    10
       4.02      Computations............................................    11
       4.03      Minimum Disbursement Amounts............................    11
       4.04      Certain Notices.........................................    11

Section 5. Yield Protection, Etc.........................................    11
       5.01      Determination of Interest Rates Inadequate or Unfair....    11
       5.02      Increased Costs.........................................    12
       5.03      Illegality..............................................    12
       5.04      Costs, Expenses and Losses..............................    13
       5.05      Taxes...................................................    13

Section 6. Conditions....................................................    14
       6.01      Initial Disbursement....................................    14
       6.02      Initial and Subsequent Disbursements....................    14
       6.03      Suspension or Cancellation..............................    15

Section 7. Representations and Warranties................................    15

Section 8. Covenants of the Borrower.....................................    15
</TABLE>

<PAGE>

<TABLE>
<S>                                                                          <C>
Section 9. Events of Default ............................................    16

Section 10. Miscellaneous................................................    16
       10.01     Notices.................................................    16
       10.02     Waiver..................................................    16
       10.03     Amendments, Etc.........................................    17
       10.04     Successors and Assigns..................................    17
       10.05     Assignments and Participations..........................    17
       10.06     Survival..... ..........................................    17
       10.07     Counterparts............................................    18
       10.08     Governing Law; Jurisdiction; Service of Process; Etc....    18
       10.09     Waiver of Jury Trial....................................    18
       10.10     No Immunity.............................................    18
       10.11     Judgment Currency.......................................    19
       10.12     Use of English Language.................................    19
       10.13     Captions................................................    19
       10.14     Severability............................................    19
       10.15     Confidential Information................................    19
       10.16     Set-Off.................................................    20
       10.17     Indemnity...............................................    20
</TABLE>

EXHIBIT A       -       Form of Note
EXHIBIT B       -       Form of Disbursement Request
EXHIBIT C       -       Form Disbursement Receipt

                                     - ii -

<PAGE>

                  LOAN AGREEMENT (this "Agreement") dated as of December 22.
1999, between: Comunicacion y Telefonia Rural S.A., a sociedad anonima duly
organized and validly existing under the laws of Chile (the "Borrower"); and the
Inter-American Development Bank, an international organization established by
the Articles of Agreement among its member countries ("IDB").

                  The Borrower has requested that IDB make a loan to it in an
aggregate principal amount not exceeding $25,000,000. IDB is prepared to make
such loan upon the terms and conditions hereof, and, accordingly, the parties
hereto agree as follows:

                  Section 1. Definitions and Accounting Matters.

                  1.01 Certain Defined Terms. Except as otherwise expressly
provided herein, capitalized terms used herein which are defined in the Common
Agreement (referred to below) shall have the meanings herein as defined therein.
As used herein, the following terms shall have the following meanings (all terms
defined in this Section 1.01 or in other provisions of this Agreement in the
singular to have the same meanings when used in the plural and vice versa):

                  "A Loan" means the portion of the Loan made by IDB to the
Borrower pursuant to Section 2.02(a).

                  "A Loan Interest Rate" means the rate of interest payable on
the outstanding principal amount of the A Loan from time to time, determined in
accordance with Section 3.02(a).

                  "Anticipated Income Stream" shall mean the aggregate interest
payments which would have been due on the Loan at the interest rates specified
in Section 3.05 hereof for the period from the prepayment date until the
sixteenth Principal Payment Date, assuming that: (a) no prepayment takes place;
(b) the schedule of installment dates is adhered to; and (c) all payments are
made on their due dates; provided, however, that if the maturity dates of the A
Loan and the B Loan are different, then the Anticipated Income Stream shall be
calculated separately for each of the A Loan and the B Loan.

                  "Applicable Law" means any law, statute, regulation,
ordinance, communique, enactment, judgment, order, decree, directive,
requirement or other similar legally binding decision of, or any legally binding
interpretation of, any of the foregoing by any Governmental Body whether now or
in the future in effect.

                  "Applicable Margin" means (a) with respect to a Disbursement
of the A Loan, 4.50% per annum and (b) with respect to a Disbursement of the B
Loan, a percentage per annum not to exceed 4.50%.

                  "Available Income Stream" shall mean the interest payments
which would have been due on the Loan at a rate equal to the aggregate of (a)
the Applicable Margin applicable to the A Loan and (b) the Current Swap Market
Fixed Rate for the period from the prepayment date until the sixteenth Principal
Payment Date, assuming that: (i) no prepayment takes place; (ii) the

                               IDB Loan Agreement

<PAGE>

                                      - 2 -

schedule of installment dates is adhered to; and (iii) all payments are made on
their due dates: provided, however, that if the maturity dates of the A Loan and
the B Loan are different, then the Available Income Stream shall be calculated
separately for each of the A Loan and the B Loan,

                  "B Loan" means the portion of the Loan which may be made or
acquired by the Participant(s) to the Borrower pursuant to Section 2.02(b).

                  "B Loan Interest Rate" means the rate of interest payable on
the outstanding principal amount of the B Loan from time to time, as set out in
Section 3.02(b).

                  "Commitment" means the obligation of IDB to make one or more
Disbursements in an aggregate principal amount up to but not exceeding
$25,000,000 (as the same may be reduced at any time or from time to time
pursuant to Section 2.03).

                  "Commitment Termination Date" means the date which is the
earliest of (a) the date on which the aggregate amount of the Commitment is
fully borrowed, (b) the unused Commitment is terminated in full or reduced to
zero, (c) December 31, 2000 and (d) the date upon which Completion of Network
Construction has occurred.

                  "Common Agreement" means the Common Agreement dated as of the
date hereof among the Borrower, IDB and EDC.

                  "Disbursement" means any amount of the Loan (in the form of
either an A Loan or a B Loan) disbursed from time to time pursuant to Section
2.02.

                  "Disbursement Request" means the notice by the Borrower to be
made in accordance with Sections 2.02 and 4.04, substantially in the form of
Exhibit B.

                  "Dollars" and "$" each means the lawful money of the United
States of America.

                  "Conversion Notice" shall have the meaning assigned to such
term in Section 3.05.

                  "Current Swap Market Fixed Rate" means the fixed rate quoted
in the relevant swap market as the equivalent of the U.S. Dollar six-month
LIBOR: (a) for a notional principal amount equal to the amount of the Loan then
outstanding, in Dollars; (b) for a period equal to the scheduled remaining life
of the Loan; (c) with an amortization schedule as provided in Section 3.01; (d)
on terms otherwise in accordance with the ISDA Terms (with any necessary
determinations being made by IDB in accordance with customary market practices);
and (e) calculated by IDB as of the prepayment date on the basis of quotations
in the relevant swap market for value on that date; provided, however, that if
the terms of the A Loan and the B Loan have different tenors and/or different
amortization schedules, then the Current Swap Market Fixed Rate shall be
calculated separately for each of the A Loan and the B Loan.

                  "Fixed Swap Equivalent Rate" means, as of any New York
Business Day, the fixed interest rate being offered in the London eurodollar
interbank market as the rate at which a floating interest rate obligation may be
exchanged for a fixed interest rate obligation of similar maturity, amount and
creditworthiness, as adjusted for transaction costs. The Fixed Swap

                               IDB Loan Agreement

<PAGE>

                                      - 3 -

 Equivalent Rate shall be the prevailing swap rate on the applicable Interest
 Rate Determination Date as determined by IDB with reference to
 generally-accepted quoted swap rates. IDB's determination of the Fixed Swap
 Equivalent Rate shall be conclusive in the absence of clearly demonstrable
 error.

                  "IDB" has the meaning given to such term in the introductory
paragraph to this Agreement.

                  "Interest Payment Date" means November 15th and May 15th of
 each calendar year occurring during the term of this Agreement, or, if any such
 date is not a Business Day, the next succeeding Business Day.

                  "Interest Period" means:

                  (a) for any Disbursement, each period commencing on the date
         of such Disbursement and ending on and including the date preceding the
         next Interest Payment Date; or

                  (b) for those amounts in default payable pursuant to Sections
         2.04, 5.01, 5.02, 5.03, 5.04 and 5.05 hereof and Sections 2.05, 2.06
         and 10.04 of the Common Agreement, the period commencing on and
         including the date of default and ending on and including the date
         preceding the next Interest Payment Date;

and thereafter the period commencing on and including the relevant Interest
Payment Date and ending on and including the date preceding the next Interest
Payment Date.

                  "Interest Rate Determination Date" means (a) at any time when
the interest rate applicable to the Loan is calculated by reference to LIBOR,
the day which is two London Business Days prior to (i) the date of a
Disbursement or (ii) any Interest Payment Date and (b) at any time after the
exercise of the Borrower's option pursuant to Section 3.05, the day which is two
New York Business Days prior to (i) the date of a Disbursement or (ii) the
Interest Payment Date on which the option pursuant to Section 3.05 is exercised.

                  "ISDA Terms" means the terms and conditions set forth in the
Master Agreement (Multicurrency-Cross Border) published by the International
Swaps and Dealers Association, Inc.

                  "LIBOR" means, for any Interest Period, the rate per annum for
six-month deposits appearing on Page 3750 of the Dow Jones Markets (Telerate)
Service at approximately 11:00 a.m. London time on the relevant Interest Rate
Determination Date as the rate for the offering of Dollar deposits having a term
comparable to such Interest Period, provided that if more than one such rate
appears, the offered rate shall be the arithmetic average (rounded upward, if
necessary, to the nearest 1/16th of 1%) of such offered rates. If for any reason
LIBOR cannot be determined by reference to Telerate Page 3750 on any Interest
Rate Determination Date, IDB shall notify the Borrower and shall determine LIBOR
as of such Interest Rate Determination Date using the arithmetic average
(rounded upward, if necessary, to the nearest 1/16th of 1%) of such offered
rates quoted by three internationally recognized banking

                               IDB Loan Agreement

<PAGE>

                                      - 4 -

institutions to be selected by the Senior Lenders on such Interest Rate
Determination Date. All determinations of LIBOR by IDB shall be conclusive
absent clearly demonstrable error.

                  "Loan" means the loan provided for in Section 2.01. Each
reference to the "Loan" at any time after the execution and delivery of a
Participation Agreement shall be deemed to be a reference to the A Loan and B
Loan, collectively.

                  "Maintenance Amount" has the meaning assigned to such term in
Section 5.02.

                  "Net Present Value" means the value of the relevant
Anticipated Income Stream discounted (with stops on the same dates as would have
been Payment Dates) back to the prepayment date from each of the relevant
Payment Dates at a discount rate equal to the Current Swap Market Fixed Rate.

                  "Notes" means the promissory notes provided for in Section
2.05(a), substantially in the form of Exhibit A.

                  "Participant" means a Person designated by IDB from whom IDB
receives a formal commitment to acquire a Participation in the B Loan in the
form of an executed Participation Agreement and, provided the prior written
consent of IDB is obtained to such succession or assignment, any successor or
assignee of such Person.

                  "Participation" means the interest of a Participant in the B
Loan or, as the context may require, in a Disbursement of the B Loan.

                  "Participation Agreement(s)" means each Participation
Agreement entered into between IDB and a Participant from time to time and
pursuant to which such Participant agrees to acquire a Participation.

                  "Paying Agency Agreement" means the Paying Agency Agreement to
be entered into among the Borrower, IDB and the Paying Agent, in all respects
satisfactory to IDB in its sole discretion, with respect to the collection and
administration of disbursements and payments made by the Borrower in respect of
the Loan and other amounts payable hereunder and under the other Transaction
Documents; provided, however, that, in the event there is not more than one
Participant in the B Loan, there shall be no Paying Agency Agreement.

                  "Paying Agent" means the paying agent appointed pursuant to
the terms of the Paying Agency Agreement, if any, in its capacity as paying
agent thereunder, or any successor agent appointed pursuant to the terms of the
Paying Agency Agreement.

                  "Principal Payment Dates" means May 15th and November 15th of
each calendar year, commencing upon May 15, 2001, and ending on November 15,
2008.

                  1.02 Principles of Construction. Section 1.02 of the Common
Agreement is incorporated herein by reference as if fully set forth herein.

                               IDB Loan Agreement

<PAGE>
                                      - 5 -

                  Section 2. The Commitment Loan, the Notes and Prepayments.

                  2.01 Loan. IDB agrees, on the terms and subject to the
conditions of this Agreement, to make a loan (the "Loan") to the Borrower in
Dollars on or before the Commitment Termination Date in an aggregate principal
amount up to but not exceeding the amount of the Commitment. The Loan, which
will be disbursed as provided in Section 2.02, may, subject to the execution and
delivery of a Participation Agreement, consist of:

                  (a) an A Loan, to be funded by IDB from its ordinary capital
         resources; and

                  (b) a B Loan, to be funded by Participants, if any, pursuant
         to their respective Participation Agreements.

                  2.02 Disbursements. Disbursements of the Loan shall be made by
IDB, in Dollars, upon receipt of a Disbursement Request from the Borrower and
the Borrower's compliance with the provisions of Section 6 hereof, to the credit
of an account of the Borrower maintained with a financial institution in New
York, New York, advised to IDB, or to the credit of another account maintained
with a bank in such place as the Borrower and IDB shall from time to time agree
upon. The Borrower shall, in accordance with Section 4.04, deliver to IDB a
request for such Disbursement (a "Disbursement Request") in writing,
substantially in the form of Exhibit B and upon receipt of the proceeds of each
Disbursement or any portion thereof, the Borrower shall execute and deliver to
IDB within three Business Days after the Disbursement a receipt therefor
substantially in the form of Exhibit C. In the event that a Participation
Agreement has been executed and delivered prior to the Commitment Termination
Date, IDB shall have no obligation to make a Disbursement of the B Loan except
to the extent that each Participant shall have made available to IDB, in
immediately available funds, its proportionate share of such Disbursement in
accordance with the Participation Agreement to which it is a party.

                  2.03 Changes of the Commitment.

                  (a) Voluntary Reduction of Commitment. The Borrower shall have
the right only on one occasion during the term of this Agreement to terminate or
reduce the unutilized amount of the Commitment; provided that (i) the Borrower
shall give notice of each such termination or reduction as provided in Section
4.04, (ii) a partial reduction shall be in an amount at least equal to
$1,000,000 and (iii) the Borrower shall demonstrate to the written satisfaction
of IDB, either (A) that sufficient available permitted sources of funds exist to
achieve Completion of Network Construction or (B) that additional funds are not
needed to achieve Completion of Network Construction.

                  (b) Automatic Termination of Commitment. The Commitment shall
be automatically reduced to zero at the close of business on the Commitment
Termination Date. Any borrowing hereunder shall be deemed to reduce
automatically the Commitment in the amount of such borrowing. Amounts borrowed,
and subsequently repaid or prepaid, may not be reborrowed.

                  (c) No Reinstatement of Commitment. The Commitment once
terminated or reduced may not be reinstated.

                               IDB Loan Agreement

<PAGE>

                                      - 6 -

                  2.04 Fees.

                  (a) Commitment Fee. The Borrower shall pay to IDB a commitment
fee on the daily average unutilized amount of the Commitment, for the period
from and including the date hereof to but not including the earlier of the date
the Commitment is terminated and the Commitment Termination Date, at a rate per
annum equal to 0.75%. Accrued commitment fee shall be payable on each Interest
Payment Date including the Interest Payment Date first following the earlier of
the date the Commitment is terminated and the Commitment Termination Date.

                  (b) Front-End Fee. The Borrower shall pay to IDB a front-end
fee in an amount equal to $250,000 on the date of the initial Disbursement of
the Loan.

                  (c) Administration Fee. In the event that a Participation
Agreement is executed and delivered at any time during the term of this
Agreement, the Borrower shall pay to IDB on the first Interest Payment Date
following such execution and delivery of such Participation Agreement and each
anniversary thereof throughout the term of this Agreement an administration fee
in an amount equal to the lesser of (i) $25,000 and (ii) the product of (A)
$5,000 multiplied by (B) the number of Participants. The fee referred to in the
preceding sentence shall be in addition to the Borrower's obligation to pay for
any costs incurred under the Paying Agency Agreement and to reimburse any
consultants' fees in connection with such administrative role.

                  (d) Underwriting Fee. Upon the execution and delivery of any
Participation Agreement, the Borrower shall pay to the Participant party to such
Participant Agreement an amount equal to 0.5% of the B Loan acquired pursuant
thereto.

                  2.05 The Notes.

                  (a) As additional evidence of the Borrower's obligation to pay
the principal of the Loan as provided herein, the Borrower shall execute and
deliver to IDB or, at the direction of IDB, to the Custodian for the benefit of
IDB, on the date of each Disbursement pursuant to Section 2.02 hereof, a duly
executed and notarized promissory note of the Borrower (such Note also to be
signed by Chilean Holdco, BVI Holdco and SR (BV) Holdings) on which stamp tax
has been paid (such payment to be certified by the Notary Public that notarized
such Note), payable on demand to the order of IDB, dated the date of such
Disbursement, and in a principal amount equal to the amount of the Disbursement
to be made by IDB on such date. The rights of IDB under this Agreement, and
under each of the other Transaction Documents, shall not be limited, reduced or
otherwise affected by the existence of, or any action with respect to, the
Notes; provided, however, that any reduction (by repayment, prepayment or
otherwise) in the principal amount of any Disbursement hereunder or repayment or
prepayment of the face amount of the Notes, as the case may be, shall discharge
pro tanto the equivalent face amount of the Notes or, as the case may be, the
corresponding principal amount of any Disbursement hereunder.

                  (b) The Borrower shall re-execute the Notes as and when
requested to do so by IDB or the Custodian for the benefit of IDB and in any
event upon ten month intervals of the

                               IDB Loan Agreement

<PAGE>

                                      - 7 -

date of each Disbursement; it being understood that IDB or the Custodian may
re-execute the Notes pursuant to the authority contained in the Power of
Attorney described in the IDB Custodian Agreement.

                  (c) Upon the payment in full of the obligations evidenced
thereby, IDB shall cancel, and return, or instruct the Custodian to cancel and
return to the Borrower, each such Note so paid in full.

                  (d) IDB shall not be entitled to make a demand for payment
under any Note unless the amounts so demanded are then due and payable (whether
at scheduled maturity, by mandatory prepayment, acceleration or otherwise) by
the Borrower in accordance with the terms of this Agreement. If IDB exercises
any right in any court in Chile under any Note delivered pursuant to this
Agreement, it shall not be required for such purpose to evidence to the Borrower
or any other Person that such Notes represent obligations of the Borrower under
this Agreement or any other Person under any other Transaction Document nor that
any condition herein or therein has been fulfilled.

                  2.06 Optional and Mandatory Prepayments. The parties hereto
agree that any optional or mandatory prepayment of the Loan shall be made in
accordance with Section 2.05 or 2.06, as the case may be, of the Common
Agreement.

                  2.07 Premium for Prepayment of Fixed-Rate Loan. In addition to
the prepayment fees described in Sections 2.05 and 2.06 of the Common Agreement,
if the Loan has been converted to a fixed rate of interest loan, then, on the
date of any prepayment of the Loan in accordance with Section 2.05 or Section
2.06 of the Common Agreement, the Borrower shall pay a premium, in Dollars, in
an amount equal to the positive difference, if any, between the Net Present
Value of the Anticipated Income Stream and the Net Present Value of the
Available Income Stream or, in the case of a partial prepayment, the same
proportion of such difference as the proportion of the amount of the Loan to be
prepaid to the amount of the Loan then outstanding. The determination by IDB of
the prepayment premium shall be final and conclusive unless shown by the
Borrower to have involved manifest error.

                  Section 3. Payments of Principal and Interest.

                  3.01 Repayment of Loan. The Borrower hereby promises to pay on
the Principal Payment Dates to IDB the principal of the Loan in sixteen
consecutive installments in amounts equal to the percentages (set forth below)
of the aggregate principal amount of the Loan outstanding on the date following
the date of the final Disbursement of the Loan hereunder, as follows:

<TABLE>
<CAPTION>
Installment Number            Percentage
------------------            ----------
<S>                           <C>
       1-4                       5.00%
       5-8                       6.00%
      9-16                       7.00%
</TABLE>

provided that the Borrower shall pay the aggregate outstanding principal amount
of the Loan on November 15, 2008. Amounts paid pursuant to this Section 3.01 may
not be reborrowed. Upon

                               IDB Loan Agreement

<PAGE>

                                      - 8 -

the execution and delivery of any Participation Agreement. IDB shall notify the
Borrower in writing the portion of each subsequent installment of principal
which should be paid to IDB and to each Participant.

                  3.02 Interest.

                  (a) Provisions Specific to the A Loan. Subject to Sections
3.03 and 3.04, the Borrower shall pay interest on the outstanding principal
amount of the A Loan from time to time as follows:

                  (i) During each Interest Period, the A Loan (or, in respect of
         the first Interest Period of each Disbursement, the amount of that
         Disbursement) shall bear interest at the A Loan Interest Rate (as
         determined under Section 3.02(a)(ii) below) for that Interest Period;

                  (ii) The A Loan Interest Rate shall equal the sum of LIBOR
         plus the Applicable Margin. The A Loan Interest Rate will be reset
         semiannually on each Interest Rate Determination Date during each year,
         will apply to the total outstanding disbursed amount of the A Loan at
         such dates and will accrue for the then relevant Interest Period
         between the immediately succeeding Interest Payment Date and the next
         succeeding Interest Payment Date. For Disbursements made on a date
         other than an Interest Payment Date, interest will accrue from the
         Disbursement Date until the next Interest Payment Date at the interest
         rate prevailing at the Interest Rate Determination Date plus the
         Applicable Margin corresponding to the monthly quoted LIBOR interest
         period equal to or greater than the period from the Disbursement to the
         next Interest Payment Date;

                  (iii) On each Interest Rate Determination Date for any
         Interest Period, IDB shall, in accordance with the relevant subsection
         above, determine the A Loan Interest Rate applicable to that Interest
         Period and promptly notify the Borrower thereof; and

                  (iv) The determination by IDB, from time to time, of the A
         Loan Interest Rate shall be final and conclusive and shall be binding
         on the Borrower (absent manifest error).

                  (b) Provisions Specific to the B Loan. Subject to Sections
3.03 and 3.04, the Borrower shall pay interest on the outstanding principal
amount of the B Loan from time to time as follows:

                  (i) The B Loan (or, in respect of the first Interest Period of
         each Disbursement, the amount of that Disbursement) shall bear interest
         at the B Loan Interest Rate (as determined under Section 3.02(b)(ii)
         below) for that Interest Period;

                  (ii) The B Loan Interest Rate shall equal the sum of LIBOR
         plus the Applicable Margin. The B Loan Interest Rate will be reset
         semiannually on each Interest Rate Determination Date during each year,
         will apply to the total outstanding disbursed amount of the B Loan at
         such dates and will accrue for the then relevant Interest Period
         between the immediately succeeding Interest Payment Date and the next
         succeeding Interest Payment Date. For Disbursements made on a date
         other than an Interest Payment

                               IDB Loan Agreement

<PAGE>

                                      - 9 -

         Date, interest will accrue from the Disbursement Date until the next
         Interest Payment Date at the interest rate prevailing at the Interest
         Rate Determination Date plus the Applicable Margin corresponding to the
         monthly LIBOR interest period equal to or greater than the period from
         the Disbursement to the next Interest Payment Date:

                  (iii) On each Interest Rate Determination Date for any
         Interest Period. IDB shall, in accordance with the relevant subsection
         above, determine the B Loan Interest Rate applicable to that Interest
         Period and promptly notify the Borrower thereof; and

                  (iv) The determination by IDB, from time to time, of the B
         Loan Interest Rate shall be final and conclusive and shall be binding
         on the Borrower (absent manifest error).

                  3.03 Late Charges.

                  (a) Any principal of the Loan that is not paid by the Borrower
when due hereunder and, to the extent permitted by Applicable Law, any interest
on the Loan that is not paid by the Borrower when due hereunder, shall bear
interest, payable on demand, for each day from and including the date payment
thereof was due to but excluding the date actual payment is received by IDB at a
rate per annum equal to the sum of (i) two percent (2%) per annum (or such lower
rate as may be required by Applicable Law) plus (ii) the rate of interest
(including the Applicable Margin) otherwise provided in Section 3.02(a) (in the
case of the principal of, and interest on, the A Loan) or Section 3.02(b) (in
the case of principal of, and interest on, the B Loan).

                  (b) All fees and other Obligations (other than principal of,
and interest on, the A Loan and the B Loan) that are not paid by the Borrower
when due hereunder or under any other applicable Financing Document shall bear
interest, payable on demand, for each day from and including the date payment
thereof was due to but excluding the date actual payment is received by IDB at a
rate per annum equal to the sum of (i) two percent (2%) per annum (or such lower
rate as may be required by Applicable Law) plus (ii) the rate of interest
(including the Applicable Margin) provided in Section 3.02(a).

                  3.04 Maximum Interest Rate.

                  (a) No provision of this Agreement shall require, or be
construed as requiring, the Borrower to pay interest or other charges on the
Loan at a rate exceeding the maximum rate of interest or other charges permitted
by Applicable Law.

                  (b) If the amount of interest payable on the Loan on any
Interest Payment Date in respect of the immediately preceding Interest Period,
computed pursuant to Section 3.02(a) or Section 3.02(b), as the case may be,
would exceed the maximum amount permitted by Applicable Law, the amount of
interest or other charges payable on such Interest Payment Date shall be
automatically reduced to such maximum permissible amount.

                  (c) If the amount of interest payable on the Loan for any
Interest Period is reduced pursuant to Section 3.04(b) and the amount of
interest payable on the Loan for any subsequent Interest Period, computed
pursuant to Section 3.02(a) or Section 3.02(b), as the case

                               IDB Loan Agreement

<PAGE>

                                     - 10 -

may be, would be less than the maximum amount permitted by Applicable Law, then
the amount of interest payable on the Loan for such subsequent Interest Period
shall be automatically increased to such maximum permissible amount; provided
that at no time shall the aggregate amount of interest paid pursuant to this
Section 3.04(c) exceed the aggregate amount by which interest payable on the
Loan has been reduced pursuant to Section 3.04(b).

                  (d) Except to the extent required pursuant to Applicable Law,
none of the fees referred to in Section 2.04, any legal fees nor any other fees,
charges or Obligations payable hereunder or under the other Transaction
Documents shall be included as interest in calculating the amount of interest
payable on the Loan.

                  3.05 Fixed Rate Option.

                  (a) The Borrower shall have the right, once during the life of
the Loan, subject to the approval of the Central Bank under Applicable Law, to
convert both the A Loan Interest Rate and the B Loan Interest Rate from
LIBOR-based variable rates to a fixed interest rate, by providing written notice
of the exercise of such conversion right to IDB (a "Conversion Notice"), not
later than thirty (30) days prior to the Interest Payment Date as of which such
conversion is to be effective. Upon such Interest Payment Date following the
delivery of such a Conversion Notice, (i) the fixed interest rate applicable to
the A Loan shall be equal to the sum of: (A) the Fixed Swap Equivalent Rate
applicable to the A Loan on the Interest Rate Determination Date, plus (B) the
Applicable Margin for the A Loan, plus (C) 1/8 of one percent (0.125%) and (ii)
the fixed interest rate applicable to the B Loan shall be equal to the sum of:
(A) the Fixed Swap Equivalent Rate applicable to the B Loan on the Interest Rate
Determination Date, plus (B) the Applicable Margin for the B Loan, plus (C) 1/8
of one percent (0.125%).

                  (b) The Borrower shall pay to IDB on the Interest Payment Date
on which such conversion is to be effective a conversion fee of 1/8 of one
percent (0.125%) on the outstanding amount of the Loan on the Interest Payment
Date as of which such conversion is to be effective.

                  Section 4. Payments; Computations; Etc.

                  4.01 Payments.

                  (a) Payments by the Borrower. Except to the extent otherwise
provided herein, all payments of principal, interest and other amounts to be
made by the Borrower to IDB under this Agreement and the Notes, and, except to
the extent otherwise provided therein, all payments to be made by the Borrower
to IDB under any other Financing Document, shall be made in Dollars, in
immediately available funds, without deduction, set-off or counterclaim, not
later than 1:00 p.m., New York City time, on the date on which such payment
shall become due and in funds for same-day settlement, (a) in respect of the A
Loan, to IDB at Bankers Trust Company, New York, ABA number 021001033,
Attention: MT-Foreign Section, for credit to account of IDB-PR1, account number
04246884, or at such other account or financial institution as IDB may, from
time to time, notify the Borrower and (b) in respect of the B Loan, to such
accounts(s) as IDB shall notify to the Borrower. Any payments received after
1:00 p.m. (New York City time) will be considered for all purposes as having
been made on the next following Business Day.

                               IDB Loan Agreement

<PAGE>

                                     - 11 -

                  (b) Application of Payments. All payments made by or for the
account of the Borrower under this Agreement or under the other Financing
Documents will be applied first, to all amounts then due and payable other than
principal and interest in such order as IDB may elect, second, to default
interest owing pursuant to Section 3.03, third, to interest due and payable
pursuant to Section 3.02, fourth, to principal due and payable, and lastly, to
prepayment of installments of principal in inverse order of maturity; provided,
however, that any prepayment made by the Borrower pursuant to Section 2.06(d) of
the Common Agreement shall be applied pro rata to the remaining principal
installments to be paid in accordance with Section 3.01. Notwithstanding the
foregoing, if IDB shall at any time receive less than the full amount then due
and payable to it in respect of the Obligations of the Borrower under this
Agreement or any other Financing Document, IDB shall have the right (as between
IDB and the Borrower) to allocate and apply such payment in any way or manner
and for such purpose or purposes under this Agreement or any other Financing
Document as IDB in its sole discretion shall determine, notwithstanding any
instruction that the Borrower may give to the contrary.

                  (c) Extensions to Next Business Day. If the due date of any
payment under this Agreement or the Notes would otherwise fall on a day that is
not a Business Day, such date shall be extended to the next succeeding Business
Day, and interest shall be payable for any principal so extended for the period
of such extension.

                  4.02 Computations. Interest on the Loan and the fees set forth
in Section 2.04 shall be computed on the basis of a year of 360 days and actual
days elapsed (including the first day but excluding the last day) occurring in
the period for which payable.

                  4.03 Minimum Disbursement Amounts. Each Disbursement, other
than the last hereunder, shall be in an amount at least equal to $5,000,000.

                  4.04 Certain Notices. Notices by the Borrower to IDB of
terminations or reductions of the Commitment, of Disbursements and of optional
prepayments of the Loan shall be irrevocable and shall be effective only if
received by IDB not later than 10:00 a.m., New York City time, on the number of
Business Days prior to the date of the relevant termination, reduction,
Disbursement or prepayment specified below or as otherwise acceptable to IDB:

<TABLE>
<CAPTION>
                                                         Number of
               Notice                               Business Days Prior
               ------                               -------------------
<S>                                                 <C>
Termination or reduction of the Commitment                  30
Disbursements of the Loan                                   10
Optional prepayment of the Loan                             60
</TABLE>

Any notice of termination or reduction of the Commitments shall specify the
amount of the Commitment to be terminated or reduced and be in writing.

                  Section 5. Yield Protection. Etc.

                  5.01 Determination of Interest Rates Inadequate or Unfair, (a)
If, on or prior to the first day of any Interest Period:

                               IDB Loan Agreement

<PAGE>
                                     - 12 -

                  (i) IDB determines, in its reasonable judgment, that deposits
         in Dollars (in the applicable amounts) are not being offered to IDB or
         any Participant in the London interbank market for such Interest
         Period; or

                  (ii) IDB shall determine, in its reasonable judgment, that the
         LIBOR rate as determined by IDB will not adequately and fairly reflect
         the cost to IDB or any Participant of funding its portion of the IDB
         Loan for such Interest Period;

then IDB shall forthwith give notice thereof (which notice shall describe in
reasonable detail the basis for such determination) to the Borrower, whereupon
until IDB notifies the Borrower that the circumstances giving rise to such
determination no longer exist, the obligations of IDB to make the Loan (or such
Participant's portion thereof) shall be suspended until such time as IDB and the
Participants may again make the Loan or portion thereof (in which case the
provisions of the immediately succeeding paragraph shall be applicable).

                  (b) If the obligation of IDB to make the Loan (or a
Participant's obligation to make its respective portion of the B Loan), is
suspended pursuant to subsection (a), above (the portion of the Loan so
affected, an "Affected Loan"), then the Affected Loan shall be automatically
converted into a loan (as such, the "Converted Loan") which bears interest at a
rate per annum to be designated by IDB in its sole discretion (which rate will,
to the extent possible, reflect the credit spread for such Affected Loan and the
cost to IDB of funding such Converted Loan (or the cost to such Participant of
funding its portion of the Converted Loan)), whereupon all prepayments and
payments of principal which would otherwise be applied to the Affected Loan
shall be applied instead to the Converted Loan, and the Affected Loan shall be
made or continued instead as the Converted Loan.

                  5.02 Increased Costs. In the event of any change in Applicable
Law or regulation or the interpretation thereof by any Governmental Body charged
with the administration thereof occurring after the date of this Agreement which
imposes on IDB any condition regarding the making or maintaining of the Loan
which increases IDB's net incremental cost of making or maintaining the Loan
(including, without limitation, any reserve, special deposit, capital adequacy
or similar requirement and any tax (other than any tax imposed on IDB's overall
net income), duty or similar charge), IDB from time to time shall notify the
Borrower of such increased cost and the Borrower shall pay to IDB on demand an
amount equal to such increased cost (the "Maintenance Amount"). The IDB's
determination of the Maintenance Amount shall be conclusive absent clearly
demonstrable error, and IDB may use any reasonable averaging and attribution
methods in determining the Maintenance Amount.

                  5.03 Illegality. Notwithstanding anything to the contrary
contained in this Agreement, if, subsequent to the date of this Agreement, any
change is made in any Applicable Law or the interpretation or application
thereof by any Governmental Body shall make it unlawful for IDB or any
Participant to continue to maintain or to fund the Loan or the relevant
Participation or any portion thereof, the Borrower shall, upon request by IDB,
prepay promptly in full that portion of the principal amount of the Loan which
IDB advises is so affected, together with all accrued and unpaid interest and
Maintenance Amount (if any) (and, if such prepayment is not made on an Interest
Payment Date, any amount payable in respect of prepayment under Section 5.04)
thereon and other amounts payable under Section 5.04 and the right of the

                               IDB Loan Agreement

<PAGE>

                                     - 13 -

Borrower to disbursement of that portion of the undisbursed Loan shall
terminate: provided, however, that upon a prepayment by the Borrower under this
Section 5.03. the Borrower shall not be responsible for the prepayment fees set
forth in Section 2.05(a) (vi) and Section 2.05(b) of the Common Agreement.

                  5.04 Costs. Expenses and Losses. If IDB or any Participant
shall incur costs, expenses or losses, as a result of:

                  (a) any failure by the Borrower (i) to pay any Obligations due
         under this Agreement or any other Financing Document on the due date
         therefor, (ii) to borrow in accordance with any Disbursement Request
         made pursuant to Section 2.02, (iii) to make any prepayment in
         accordance with a notice of prepayment pursuant to Section 4.04 hereof
         and Section 2.05 of the Common Agreement or (iv) to make any repayment
         or prepayment required pursuant to Section 3.01 hereof or Section 2.06
         of the Common Agreement, as the case may be, on any date other than the
         scheduled date for payment thereof; or

                  (b) any prepayment of all or any portion of the Loan on a date
         other than an Interest Payment Date;

the Borrower shall pay, in Dollars, upon request by IDB, the amount which IDB
shall notify to the Borrower as being the aggregate of such actual costs,
expenses and losses. For the purposes of the preceding sentence, "costs,
expenses or losses" shall include any interest paid or payable to cover any
unpaid amount, any "broken funding" or hedge liquidation costs, and any loss,
premium, penalty or expense which may be incurred in liquidating or employing
deposits of or borrowings from third parties in order to make, maintain or fund
the Loan or a Participation therein or any portion thereof (but in the case of a
late payment, after taking into account any late payment interest received under
Section 3.02).

                  5.05 Taxes.

                  (a) Payments to Be Made Free and Clear of Covered Taxes. The
Borrower acknowledges that under the Agreement Establishing the Inter-American
Development Bank dated December 30, 1959, IDB and its properties, assets, income
and transactions are immune from all taxes imposed by the IDB Members. All
payments on account of the principal of and interest on the Loan, fees and all
other amounts payable hereunder by the Borrower to or for account of IDB or, if
applicable, any Participant, including, without limitation, amounts payable
under paragraph (b) of this Section 5.05, shall be made free and clear of and
without reduction or liability for Covered Taxes. The Borrower will pay all
Covered Taxes, without charge to or offset against any amount due to IDB or, if
applicable, any Participant, prior to the date on which penalties attach
thereto, except for any Covered Taxes (other than Covered Taxes imposed on or in
respect of any amount payable hereunder, under the Notes or under any other
Financing Document) the payment of which is being contested in good faith and by
proper proceedings and against which adequate reserves are being maintained, so
long as no claim for such Covered Taxes is made on IDB or, if applicable, any
Participant.

                               IDB Loan Agreement

<PAGE>

                                     - 14 -

                  (b) Indemnification by the Borrower. The Borrower shall
indemnify IDB and any Participant against, and reimburse IDB and any Participant
on demand for, any Covered Taxes and any loss, liability, claim or expense,
including interest, penalties and legal fees, that IDB or any Participant may
incur at any time arising out of or in connection with any failure of the
Borrower to make any payment of Covered Taxes when due.

                  (c) Gross-up of Covered Taxes. In the event that the Borrower
is required by applicable law, decree or regulation to deduct or withhold
Covered Taxes from any amounts payable on, under or in respect of this Agreement
or the Loan (including, without limitation, the Chilean income taxes referred to
in paragraph (e) of this Section 5.05), the Borrower shall promptly pay the
Person entitled to such amount such additional amounts as may be required, after
the deduction or withholding of Covered Taxes, to enable such Person to receive
from the Borrower on the due date thereof, an amount equal to the full amount
stated to be payable to such Person under this Agreement; provided that in the
event the Borrower is prevented by operation of law or otherwise from paying (or
causing to be paid) such Covered Taxes, the principal, or (as the case may be)
interest or other payment due under any Financing Document shall be increased to
such amount as may be necessary so that each recipient of any payment under any
Financing Document receives the amount such recipient would have received had no
such Covered Taxes been imposed. The foregoing provisions shall not be
applicable to taxes, duties, fees and other charges which are a direct
consequence of a Participant having its principal office in Chile or having or
maintaining a permanent office or establishment in Chile if and to the extent
that the relevant Participation is acquired by such permanent office or
establishment.

                  (d) Evidence of Payment of Covered Taxes. The Borrower shall
furnish to IDB, original or certified copies of the official tax receipts in
respect of each payment of Covered Taxes required under this Section 5.05,
within 30 days after the date such payment is made, and the Borrower shall
promptly furnish to IDB any other information, documents and receipts that IDB
may reasonably require to establish to its satisfaction that full and timely
payment has been made of all Covered Taxes required to be paid under this
Section 5.05.

                  (e) Representation as to Covered Taxes. The Borrower
represents and warrants to IDB that, on and as of the date hereof, none of this
Agreement or any of the other Financing Documents, or the execution or delivery
by the Borrower of this Agreement or any of the other Financing Documents, is
subject to any Covered Taxes, and no payment to be made by the Borrower under
this Agreement is subject to any Covered Taxes, except for stamp tax at the rate
of 1.2% applicable on the principal amounts disbursed.

                  Section 6. Conditions.

                  6.01 Initial Disbursement. The obligation of IDB to make the
initial Disbursement hereunder and the obligation of the Borrower to make any
payments hereunder is, in each case, subject to the satisfaction or waiver of
each of the conditions precedent set forth in Section 6.01 of the Common
Agreement.

                  6.02 Initial and Subsequent Disbursements. The obligation of
IDB to make any Disbursement (including the initial Disbursement) of the Loan to
the Borrower is subject to the

                               IDB Loan Agreement

<PAGE>

                                     - 15 -

satisfaction or waiver of each of the conditions precedent set forth in Section
6.02 of the Common Agreement and to Section 6.03 hereof.

                  6.03 Suspension or Cancellation.

                  (a) IDB may, by notice to the Borrower, suspend or cancel the
right of the Borrower to receive Disbursements hereunder, in whole or in part,
if any of the following occur:

                  (i) the initial Disbursement shall not have been made prior to
         June 18, 2000; or

                  (ii) IDB determines that a circumstance exists that could
         reasonably be expected to have a Borrower Material Adverse Effect or a
         SRT Material Adverse Effect; or

                  (iii) a Default or Event of Default has occurred and is
         continuing.

Upon the giving of such notice, any part of the Loan covered by the notice which
has not been disbursed shall be suspended or canceled, as directed by IDB in its
sole discretion. The exercise by IDB of the right of suspension shall not
preclude IDB from exercising its right of cancellation as provided herein,
either for the same or another reason, and shall not limit any other rights of
IDB under any other provision of this Agreement or any of the other Financing
Documents.

                  (b) IDB shall not be obligated to make any Disbursement
hereunder if it determines at the time of such proposed Disbursement that it
does not have access (for reasons outside of its control) to appropriate funding
sources.

                  (c) The Commitment Fee applicable to any undisbursed portion
of the Loan will continue to accrue and be payable during any suspension of
IDB's obligation to make Disbursements pursuant to Section 6.03(a) and Section
6.03(b).

                  (d) Notwithstanding any cancellation or suspension of the
Commitment, all the provisions of this Agreement and the other Financing
Documents shall continue in full force and effect except as specifically
provided.

                  (e) The Borrower's right to request a Disbursement terminates
on the Commitment Termination Date.

                  Section 7. Representations and Warranties. The Borrower
confirms the representations and warranties contained in Section 7 of the Common
Agreement, as if made on the date of this Agreement, which representations and
warranties are incorporated herein by reference as if fully set forth herein, in
accordance with their terms.

                  Section 8. Covenants of the Borrower. The Borrower agrees
that, so long as IDB has any Commitment hereunder or any amount payable under
this Agreement remains unpaid, it shall observe and perform each of the
covenants set forth in Section 8 of the Common Agreement, which covenants and
agreements are incorporated by reference in this Agreement as if fully set forth
herein, in accordance with their terms.

                               IDB Loan Agreement

<PAGE>

                                     - 16 -

                  Section 9. Events of Default. If an Event of Default under and
as defined in the Common Agreement shall occur and be continuing, then IDB shall
have (in addition to any and all other available remedies at law and in equity)
each of the remedies to which it is entitled as provided in Section 9 of the
Common Agreement.

                  Section 10. Miscellaneous.

                  10.01 Notices.

                  (a) Except in the case of notices and other communications
expressly permitted to be given by telephone, any notice, claim, request,
demand, consent designation, direction, instruction, certificate, report or
other communication to be given hereunder shall be given in writing in the
English language (or accompanied by an accurate English language translation
upon which the recipient shall have the right to rely for all purposes) and will
be deemed duly given when (i) personally delivered, (ii) sent by facsimile
transmission (but only if, immediately after the transmission, the sender's
facsimile machine records in writing the correct answer back) or (iii) ten days
have elapsed after mailing by certified or registered mail, postage prepaid, in
each case addressed to a party at its address or facsimile transmission number
as set forth below or to another address or facsimile number of which that party
has given notice in accordance herewith. Notice of address or facsimile number
change shall be effective only upon receipt:

                  (A) if to the Borrower, to it at Av. Vitacura 2771, Oficina
         405-B, Las Condes, Santiago, Chile, Attention of Mario Andrade
         (Telecopy No. 562-236-5776, Telephone No. 562-236-5656); and

                  (B) if to IDB, to the Inter-American Development Bank, Private
         Sector Department, 1300 New York Avenue, N.W., Washington, D.C. 20577,
         Attention: Loan Administration Unit (Telecopy No. 202-623-3639).

                  (b) Notwithstanding anything to the contrary contained herein
or in any other Financing Document, and to the maximum extent permitted by law,
any notice or demand required to be given by IDB to the Borrower hereunder or
under any other Financing Document shall not be required to be given if the
giving thereof is then prohibited by, or would then result in a violation of,
any Applicable Law. The Borrower hereby irrevocably and unconditionally waives,
to the maximum extent permitted by law, the giving of any such notice or demand
in the circumstances described in the preceding sentence. The failure to give
any such notice or demand shall not modify or adversely affect the obligations,
duties and liabilities of the Borrower hereunder and under any of the other
Financing Documents, each of which obligations, duties and liabilities shall be
performed as though such notice or demand were given as contemplated herein and
in the other Financing Documents.

                  10.02 Waiver. No failure on the part of IDB to exercise and no
delay in exercising, and no course of dealing with respect to, any right, power
or privilege under this Agreement or the Notes shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or
privilege under this Agreement or the Notes preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

                               IDB Loan Agreement

<PAGE>
                                     - 17 -

                  The Borrower irrevocably waives, to the fullest extent
 permitted by applicable law, any claim that any action or proceeding commenced
 by IDB relating in any way to this Agreement should be dismissed or stayed by
 reason, or pending the resolution, of any action or proceeding commenced by the
 Borrower relating in any way to this Agreement whether or not commenced
 earlier. To the fullest extent permitted by applicable law, the Borrower shall
 take all measures necessary for any such action or proceeding commenced by IDB
 to proceed to judgment prior to the entry of judgment in any such action or
 proceeding commenced by the Borrower.

                  10.03 Amendments, Etc. No provision of this Agreement may be
modified or supplemented except by an instrument in writing signed by the
Borrower and IDB.

                  10.04 Successors and Assigns. This Agreement shall be binding
upon and enure to the benefit of the parties hereto and their respective
successors and permitted assigns.

                  10.05 Assignments and Participations.

                  (a) Assignments by the Borrower. The Borrower may not assign
any of its rights or obligations hereunder, under the Notes or the other
Financing Documents without the prior consent of IDB and any such assignment in
contravention of the terms hereof shall be null and void.

                  (b) Assignment by the Lender. IDB may assign all or a portion
of its Loan, its Notes and its Commitment to any Person. Upon execution and
delivery by the assignee to the Borrower of an instrument in writing pursuant to
which such assignee agrees to become a lender hereunder, and so long as no
Default has occurred and is continuing, upon consent thereto by the Borrower
(such consent not to be unreasonably withheld or delayed), the assignee shall
have (unless provided in such assignment with the consent of he Borrower) the
obligations, rights and benefits of the Lender hereunder in respect of the
Commitment and Loans therefore held by the Lender, and the Lender shall be
released form the Commitment, the extent of such assignment.

                  (c) Participations. IDB may sell or agree to sell to one or
more Participants a Participation in all or any part of the Loan, or in the
Commitment.

                  (d) Provision of Information to Assignees and Participants.
IDB may furnish any information concerning the Borrower in the possession of IDB
from time to time to Participants (including prospective assignees and
participants) provided that such party has entered into a confidentiality and
non-disclosure agreement with the Borrower in a form acceptable to the Borrower
acting reasonably.

                  10.06 Survival. The obligations of the Borrower under Sections
5.01, 5.04 and 5.05 hereof and Section 10.04 of the Common Agreement shall
survive the repayment of the Loan and the termination of the Commitment. In
addition, each representation and warranty made, or deemed to be made by a
notice of any Disbursement, herein or pursuant hereto or pursuant to any
Transaction Document shall survive the making of such representation and
warranty, and IDB shall not be deemed to have waived, by reason of making any
Disbursement hereunder, any Default that may arise by reason of such
representation or warranty proving to have been false or misleading,
notwithstanding that IDB may have had notice or knowledge or

                               IDB Loan Agreement

<PAGE>

                                     - 18 -

reason to believe that such representation or warranty was false or misleading
at the time such Disbursement was made.

                  10.07 Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement; provided that original signature pages
of each party hereto are delivered to each other party hereto within five
Business Days.

                  10.08 Governing Law; Jurisdiction; Service of Process; Etc.

                  (a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  (b) Submission to Jurisdiction and Venue; Process Agent.
Section 10.08 of the Common Agreement is incorporated herein by reference as if
fully set forth in this Agreement and the Borrower confirms its consent and
submission to jurisdiction and venue, and its appointment of CT Corporation
System as its agent for the service of process.

                  10.09 Waiver of Jury Trial. THE BORROWER HEREBY ACKNOWLEDGES
THAT IDB SHALL BE ENTITLED UNDER APPLICABLE LAW, INCLUDING THE PROVISIONS OF THE
INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT, TO IMMUNITY FROM A TRIAL BY JURY IN
ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OTHER
AGREEMENT TO WHICH THE BORROWER IS A PARTY, BROUGHT AGAINST IDB IN ANY COURT OF
THE UNITED STATES OF AMERICA. TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, EACH
OF THE BORROWER AND, BY ITS ACCEPTANCE HEREOF, IDB HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY FINANCING DOCUMENT TO WHICH SUCH PERSON IS A PARTY AND
FOR ANY COUNTERCLAIM THEREIN IN ANY FORUM IN WHICH IDB IS NOT ENTITLED TO
IMMUNITY FROM A TRIAL BY JURY.

                  10.10 No Immunity. To the extent that the Borrower may be or
become entitled, in any jurisdiction in which judicial proceedings may at any
time be commenced with respect to this Agreement, the Notes or any other
Financing Document, to claim for itself or its Properties or revenues any
immunity from suit, court jurisdiction, attachment prior to judgment, attachment
in aid of execution of a judgment, execution of a judgment or from any other
legal process or remedy relating to its obligations under this Agreement, the
Notes or any other Financing Document, and to the extent that in any such
jurisdiction there may be attributed such an immunity (whether or not claimed),
the Borrower hereby irrevocably agrees not to claim and hereby irrevocably
waives such immunity to the fullest extent permitted by the laws of such
jurisdiction. The Borrower agrees that the waivers set forth above shall have
the fullest extent

                               IDB Loan Agreement

<PAGE>

                                     - 19 -

permitted under the Foreign Sovereign Immunities Act of 1976 of the United
States of America and are intended to be irrevocable and not subject to
withdrawal for purposes of such Act.

                  10.11 Judgment Currency. The provisions of Section 10.11 of
the Common Agreement shall apply mutatis mutandis to this Agreement and the Loan
made hereunder.

                  10.12 Use of English Language. This Agreement has been
negotiated and executed in the English language. Except for the originals of the
Notes, all certificates, reports, notices and other documents and communications
given or delivered pursuant to this Agreement (including, without limitation,
any modifications or supplements hereto) shall be in the English language, or
accompanied by a certified English translation thereof. Except in the case of
laws or official communications of Chile, in the case of any document originally
issued in a language other than English, the English language version of any
such document shall for purposes of this Agreement, and absent manifest error,
control the meaning of the matters set forth therein.

                  10.13 Captions. The table of contents and captions and section
headings appearing herein are included solely for convenience of reference and
are not intended to affect the interpretation of any provision of this
Agreement.

                  10.14 Severability. If any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby. If any provisions of this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
such provision shall not in any way be affected or impaired in any other
jurisdiction thereby.

                  10.15 Confidential Information.

                  (a) Each of the parties hereto agrees that all Confidential
Information supplied to it by the other party under this Agreement and the
Transaction Documents shall be maintained in confidence and that it shall not
disclose, without the consent of such other party (and except as expressly
provided pursuant to this Section 10.15), any such Confidential Information to
any other Person, and shall treat the information with the same degree of care
against disclosure or unauthorized use which it affords confidential information
of other third parties. For purposes hereof, "Confidential Information" means
information delivered by or on behalf of the supplying party in connection with
the transactions contemplated by or otherwise pursuant to this Agreement that is
proprietary in nature and that was clearly marked or labeled or otherwise
adequately identified when received by the receiving party as being confidential
information of the supplying party; provided, however, that such term does not
include information that (i) was publicly known or otherwise known to the
receiving party prior to the time of such disclosure, (ii) subsequently becomes
publicly known through no act or omission by the receiving party or any person
acting on its behalf, (iii) otherwise becomes known to the receiving party other
than through disclosure by the supplying party or (iv) constitutes financial
statements delivered to the receiving party under Section 6 or Section 8 of the
Common Agreement that are otherwise publicly available.

                               IDB Loan Agreement

<PAGE>

                                     - 20 -

                  (b) Notwithstanding the foregoing. IDB may:

                  (i) disclose to any present or prospective agent, assignee or
         Participant who has agreed in writing to be bound by provisions
         substantially in the form contained in this Section 10.15;

                  (ii) disclose to its directors, officers, employees and
         agents, including accountants, legal counsel and other advisors (it
         being understood that the Persons to whom such disclosure is made will
         be informed of the confidential nature of such Confidential Information
         and instructed to keep such Confidential Information confidential); and

                  (iii) disclose to any Person for the purpose of exercising any
         power, remedy, right, authority, or discretion under this Agreement or
         any other Transaction Document in connection with a Default or an Event
         of Default;

any documents or records of, or Confidential Information about, any such
agreement (including this Agreement), or the assets, business or affairs of the
Borrower.

                  (c) The Borrower acknowledges and agrees that, notwithstanding
the terms of any other agreement between the Borrower and IDB, a disclosure of
information by IDB in the circumstances contemplated by this Section 10.15 does
not violate any duty owed to the Borrower or agreement between IDB and the
Borrower.

                  10.16 Set-Off. In addition to any rights and remedies of IDB
provided by law, IDB shall have the right, without prior notice to the Borrower,
any such notice being expressly waived by the Borrower to the extent permitted
by applicable law, upon any amount becoming due and payable by the Borrower
hereunder or under the Notes (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured. at any time held or owing by IDB or any branch or agency thereof to
or for the credit or the account of the Borrower. IDB agrees promptly to notify
the Borrower after any such set-off and application made by IDB, provided that
the failure to give such notice shall not affect the validity of such set-off
and application.

                  10.17 Indemnity. The Borrower agrees to indemnify IDB and the
Participants and to hold IDB and the Participants harmless from any and all
claims, actions, liabilities, losses, damages, costs or expenses (whether direct
or indirect, by contract, in tort, by operation of law or otherwise) incurred by
or asserted or awarded against IDB or any Participant arising out of or in
connection with or relating to any investigation, litigation or proceeding or
the preparation of any defense with respect thereto, arising out of or in
connection with or relating to this Agreement or any of the Transaction
Documents or transactions contemplated hereby and thereby or any use made or
proposed to be made with the proceeds of the Loan, whether or not such
investigation, litigation or proceeding is brought by the Borrower, any of its
Affiliates, the SRT or creditors, IDB or any other Person, or IDB is otherwise a
party thereto and whether or not the transactions contemplated thereby are
consummated.

                               IDB Loan Agreement

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered as of the day and year first above
written.

                                    COMUNICACION Y TELEFONIA
                                    RURAL S.A

                                    By: /s/ D'Arcy J. Leddy
                                       ---------------------------
                                       Name: D'Arcy J. Leddy
                                       Title: Director

                               IDB Loan Agreement

<PAGE>

                                    INTER-AMERICAN DEVELOPMENT
                                       BANK

                                    By: /s/ Bernardo Frydman
                                       ---------------------------
                                       Name: Bernardo Frydman
                                       Title: Deputy Manager, Private Sector
                                       Department

                               IDE Loan Agreement

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