Document:

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                                                                   EXHIBIT 10.44

                                                                  Execution Copy

                               Dated 27 July 2004

                         ASIA NETCOM CORPORATION LIMITED
                                  (as Borrower)

                                       and

                       THE COMPANIES LISTED IN SCHEDULE 2
                                 (as Assignors)

                                  in favour of

             INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED
                              (as Security Trustee)

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

                         GROUP ASSIGNMENT OF INSURANCES

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

                                 RICHARDS BUTLER
                                    HONG KONG

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                                                [Group Assignment of Insurances]

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE NO.                                          CLAUSE HEADING                                        PAGE NO.
---------                                           --------------                                        -------
<S>         <C>                                                                                           <C>
1.          DEFINITIONS AND CONSTRUCTION...............................................................      1

2.          CHARGE AND ASSIGNMENT......................................................................      3

3.          CONTINUING AND INDEPENDENT SECURITY........................................................      5

4.          REPRESENTATIONS AND WARRANTIES.............................................................      7

5.          TAXES AND OTHER DEDUCTIONS.................................................................      9

6.          COSTS, CHARGES AND EXPENSES................................................................     11

7.          UNDERTAKINGS...............................................................................     12

8.          ENFORCEMENT................................................................................     13

9.          APPLICATION OF PROCEEDS....................................................................     14

10.         INDEMNITY..................................................................................     15

11.         SUSPENSE ACCOUNT...........................................................................     16

12.         SET OFF....................................................................................     16

13.         POWER OF ATTORNEY..........................................................................     16

14.         FURTHER ASSURANCE..........................................................................     17

15.         NOTICES....................................................................................     17

16.         WAIVERS, AMENDMENTS AND CONSENTS, REMEDIES, SEVERABILITY, ASSIGNMENT AND COUNTERPARTS......     18

17.         GOVERNING LAW AND JURISDICTION.............................................................     20

SCHEDULE 1 - FORM OF NOTICE OF ASSIGNMENT..............................................................     22

SCHEDULE 2 - THE ASSIGNORS.............................................................................     24

SCHEDULE 3 - FORM OF LOSS PAYABLE AND NOTICE OF CANCELLATION CLAUSE....................................     25

SIGNATURE PAGE.........................................................................................     26
</TABLE>

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                                                [Group Assignment of Insurances]

THIS DEED OF ASSIGNMENT OF INSURANCES is made on 27 July 2004

BETWEEN:-

(1)   ASIA NETCOM CORPORATION LIMITED, a company incorporated under the laws of
      Bermuda whose registered office is situate at Clarendon House, 2 Church
      Street, Hamilton, HM11 Bermuda (the "BORROWER");

(2)   THE COMPANIES NAMED AND PARTICULARS OF WHICH ARE SET OUT IN SCHEDULE 2
      (each an "ASSIGNOR" and collectively the "ASSIGNORS"); and

(3)   INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED, a company
      incorporated under the laws of Hong Kong acting through its head office at
      ICBC Asia Building, 122-126 Queen's Road Central, Hong Kong acting on its
      own behalf and as facility agent and trustee for and on behalf of the
      Finance Parties (the "SECURITY TRUSTEE").

WHEREAS:-

(A)   By a facility agreement signed on 2 December, 2003 (but held undated in
      escrow) as released from escrow and amended and restated by the
      Supplemental Amendment and Restatement Deed (the "FACILITY AGREEMENT")
      entered into by (1) Borrower, as borrower; (2) the banks and financial
      institutions named therein as lenders (the "LENDERS"); (3) Industrial and
      Commercial Bank of China (Asia) Limited as arranger; and (4) the Security
      Trustee, the Lenders have agreed, upon and subject to the terms of the
      Facility Agreement, to make available to the Borrower a term loan facility
      of up to US$150,000,000 (the "FACILITY") for the purposes more
      particularly specified therein.

(B)   The Security Trustee is acting as facility agent for the Finance Parties
      pursuant to the Facility Agreement and security trustee for the Finance
      Parties pursuant to this Deed and other Finance Documents.

(C)   It is a condition precedent to the availability of the Facility under of
      the Facility Agreement that the Borrower and the Assignors shall have
      executed and delivered this Assignment to the Security Trustee assigning
      their respective rights and benefits under the Insurances and the
      Insurance Proceeds in favour of the Security Trustee by way of security.

NOW THIS DEED WITNESSES as follows:-

1.    DEFINITIONS AND CONSTRUCTION

1.1   TERMS DEFINED

      In this Assignment, unless the context otherwise requires, terms used
      shall have the

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                                                [Group Assignment of Insurances]

      meanings defined in the Facility Agreement and:-

      "COLLATERAL" means all of the right, title, interest and benefit, present
      and future, of the Borrower and each Assignor in and to the Insurances
      (including, without limitation, insurance policy certificate
      no.PTF/2003/ASINET/1206 issued by Pender Telecommunications Facility
      Members Association Limited and dated 24 June, 2003) and all rights of the
      Borrower and each Assignor to make recovery under the Insurances and all
      Insurance Proceeds receivable by the Borrower and/or each Assignor;

      "INSURER" means each of the insurance companies or brokers through whom
      the Insurances are presently to be effected (including, without
      limitation, Pender Telecommunications Facility Members Association
      Limited); and

      "SECURED OBLIGATIONS" means

      (i)   in respect of the Borrower, any and all moneys, liabilities and
            obligations (whether actual or contingent, whether now existing or
            hereafter arising, whether or not for the payment of money, and
            including, without limitation, any obligation or liability to pay
            damages) which are or may become payable by the Borrower or any
            other Security Party which is a member of the CNC HK Group or any of
            them to the Security Trustee and/or the Finance Parties or any of
            them under or pursuant to the Facility Agreement and/or any other
            Finance Document and/or all other obligations hereby secured; and

      (ii)  in respect of the Assignors, any and all moneys, liabilities and
            obligations (whether actual or contingent, whether now existing or
            hereafter arising, whether or not for the payment of money, and
            including, without limitation, any obligation or liability to pay
            damages) which are or may become payable by the Borrower or any of
            the Assignors or any other Security Party or any of them to the
            Security Trustee and/or the Finance Parties or any of them under or
            pursuant to the Facility Agreement and/or any other Finance Document
            and/or all other obligations hereby secured.

1.2   TRUST

      All rights, benefits, interests, powers and discretions granted to or
      conferred on the Security Trustee pursuant to this Assignment shall be
      held by the Security Trustee on trust for the benefit of itself as
      Security Trustee and each Finance Party from time to time. The Security
      Trustee may do all acts within its powers to administer and manage the
      trust constituted by this Clause including any full or partial release
      and/or re-assignment by deed of the rights, benefits and interests
      conferred by Clause 2.1 or the release and/or reassignment of all or any
      part of the Collateral secured by this Deed. The trust constituted by this
      Clause shall come into existence on the date of this Assignment and shall
      last for so long as any of the Secured Obligations remain outstanding
      provided that for the purposes of the rule against perpetuities, the
      perpetuity period applicable to the trust constituted under this Clause
      and any dispositions made or to be made pursuant to this Assignment and
      this trust, is hereby specified as a period of eighty (80) years less one
      (1) day from the date of this Assignment.

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                                                [Group Assignment of Insurances]

1.3   CLAUSE HEADINGS

      Clause headings and the table of contents are for ease of reference only
      and shall be ignored in the interpretation of this Assignment.

1.4   CONSTRUCTION

      In this Assignment, unless the context otherwise requires:-

      (a)   Clause 1.3 of the Facility Agreement shall be deemed incorporated in
            this Assignment mutatis mutandis as if set out separately in this
            Assignment; and

      (b)   references to the "ASSIGNOR(S)", the "BORROWER", the "SECURITY
            TRUSTEE" or any "FINANCE PARTY" include, where the context permits,
            include their respective successors and transferees and permitted
            assigns in accordance with their respective interests.

1.5   SEVERAL LIABILITY

      The rights and obligations of each of the Borrower and Assignors hereunder
      and all representations, warranties, undertakings and indemnities given by
      each and any of them in this Assignment are several.

2.    CHARGE AND ASSIGNMENT

2.1   CHARGE AND ASSIGNMENT

      (a)   In consideration of the Lenders agreeing to make the Facility
            available to the Borrower upon the terms and conditions of the
            Facility Agreement and as a continuing security for the due and
            punctual performance and discharge of the Secured Obligations, each
            of the Borrower and Assignors, as beneficial owner, hereby
            mortgages, charges and agrees to charge in favour of the Security
            Trustee as trustee for the benefit of the Finance Parties by way of
            first legal charge, the Collateral.

      (b)   Each of the Borrower and Assignors as beneficial owner hereby
            assigns to the Security Trustee and the Finance Parties and each of
            them all of their respective rights, title and interest in and to
            the Collateral, present and future, in and to the Collateral.

2.2   NOTICE OF ASSIGNMENT

      Each of the Borrower and Assignors shall forthwith upon execution of this
      Assignment:

      (a)   deliver a notice of assignment in the form set out in Schedule 1, to
            each Insurer and shall, as soon as possible, request that such
            Insurer executes and delivers to the Security Trustee an
            acknowledgement to the notice of assignment; and

      (b)   give instructions to incorporate the loss payable and notice of
            cancellation clause

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                                                [Group Assignment of Insurances]

            substantially in the form of Schedule 3, and in any event in a form
            satisfactory to the Security Trustee, into each of the policies or
            contracts of insurance comprised in the Insurances.

2.3   COVENANT TO PAY

      Each of the Assignors hereby covenants that it will on demand pay to the
      Security Trustee and the Finance Parties all moneys and discharge all
      obligations and liabilities now or hereafter due, owing or incurred to the
      Security Trustee and/or the Finance Parties or any of them under or
      pursuant to the Facility Agreement and/or any other Finance Document when
      the same become due for payment or discharge.

2.4   PERFORMANCE AND INDEMNITY

      Notwithstanding the foregoing, each of the Borrower and Assignors shall
      remain liable to perform all the obligations to be performed by it in
      respect of the Insurances and shall discharge fully its obligations
      thereunder as they become due and neither the Security Trustee nor any of
      the Finance Parties shall have any obligation of any kind whatsoever
      thereunder or be under any liabilities whatsoever in the event of any
      failure to perform their obligations thereunder, and each of the Borrower
      and Assignors hereby indemnifies and agrees to keep indemnified the
      Security Trustee, the Finance Parties and each of them from and against
      any such liability.

2.5   RELEASE AND TRANSFER

      (a)   The Security Trustee shall, upon the full performance and discharge
            of the Secured Obligations to the satisfaction of the Security
            Trustee and the Finance Parties, at the request and cost of the
            Borrower and the relevant Assignor(s) and in such form as the
            Security Trustee shall reasonably approve, release and transfer to
            the Borrower or the relevant Assignor(s) (as the case maybe), the
            Collateral then the subject of the Security Interest constituted by
            this Deed.

      (b)   Notwithstanding any discharge, release or settlement from time to
            time between the Security Trustee and/or any Finance Party and the
            Borrower and/or any Assignor, if any security, disposition or
            payment granted or made to the Security Trustee and/or any Finance
            Party in respect of the Secured Obligations by the Borrower or any
            Assignor or any other person is avoided or set aside or ordered to
            be surrendered, paid away, refunded or reduced by virtue of any
            provision, law or enactment relating to bankruptcy, insolvency,
            liquidation, winding-up, composition or arrangement for the time
            being in force or for any other reason, the Security Trustee shall
            be entitled thereafter to enforce this Assignment as if no such
            discharge, release or settlement had occurred.

2.6   REGISTRATION

      The Borrower and each Assignor hereby authorises the Security Trustee
      forthwith upon execution of this Assignment to procure the delivery to the
      Companies Registry in Hong Kong or other competent authority in the place
      of incorporation of the Assignors (if necessary) the particulars of this
      Assignment.

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                                                [Group Assignment of Insurances]

3.    CONTINUING AND INDEPENDENT SECURITY

3.1   CONTINUING SECURITY

      This Assignment and the security hereby created shall remain in full force
      and effect by way of a continuing security notwithstanding the insolvency
      or liquidation or any incapacity or change in the constitution or status
      of the Borrower or any Assignor or any other person and in particular but
      without limitation shall not be, nor be considered as, satisfied by any
      intermediate discharge or payment on account of any liabilities or any
      settlement of accounts between the Borrower and/or any Assignor and the
      Security Trustee and/or any Finance Party.

3.2   ADDITIONAL SECURITY

      This Assignment and the security hereby created shall be in addition to
      and not in substitution for or derogation of any other Security Interest,
      guarantee or other security (whether given by the Borrower and/or any
      Assignor or otherwise) now or from time to time hereafter held by the
      Security Trustee and/or any Finance Party in respect of or in connection
      with the Secured Obligations.

3.3   UNRESTRICTED ENFORCEMENT

      The Security Trustee need not before exercising any of the rights, powers
      or remedies conferred upon it by this Assignment or by law (i) take action
      or obtain judgment against the Borrower or any Assignor, or any other
      person in any court, (ii) make or file any claim or prove in a winding-up
      or liquidation of the Borrower or any Assignor or of any other person or
      (iii) enforce or seek to enforce the recovery of the moneys and
      liabilities hereby secured by any other security or other rights all of
      which the Assignors hereby waive and may be enforced for any balance due
      after resorting to any one or more other means of obtaining payment or
      discharge of the monies, obligations and liabilities hereby secured.

3.4   NO DISCHARGE

      The liabilities and obligations of each Assignor under this Deed and the
      security constituted by this Deed shall remain in force notwithstanding
      any act, omission, event or circumstance whatsoever until full, proper and
      valid payment and discharge of the Secured Obligations and without
      limiting the foregoing, neither the liabilities of any Assignor under this
      Deed nor the validity or enforceability of this Deed shall be prejudiced,
      affected or discharged by:-

      (a)   the granting of any time or indulgence to the Borrower, any Assignor
            or any other person in respect of the Secured Obligations;

      (b)   any variation or modification of the Facility Agreement, any of the
            other Finance Documents or any other documents referred to therein
            or related thereto;

      (c)   the invalidity or unenforceability of any obligation or liability of
            any party under the Facility Agreement, any of the other Finance
            Documents or any other

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                                                [Group Assignment of Insurances]

            documents referred to therein or related thereto;

      (d)   any invalidity or irregularity in the execution of the Facility
            Agreement, any of the other Finance Documents or any other documents
            referred to therein or relating thereto;

      (e)   any lack of capacity or deficiency in the powers of the Borrower,
            any Assignor or any other person to enter into or perform any of its
            respective obligations under the Facility Agreement or any of the
            other Finance Documents to which it is party or any other documents
            referred to therein or related thereto or any irregularity in the
            exercise thereof or any lack of authority by any person purporting
            to act on behalf of the Borrower, any Assignor or such other person;

      (f)   the insolvency, bankruptcy or liquidation or any incapacity,
            disability or limitation or any change in the constitution or status
            of the Borrower, any Assignor or any other person;

      (g)   any other Finance Document, Security Interest, guarantee or other
            security or right or remedy being or becoming held by or available
            to the Security Trustee, any Finance Party or by any other person or
            by any of the same being or becoming wholly or partly void, voidable
            or unenforceable or impaired or by the Security Trustee or any
            Finance Party at any time releasing, refraining from enforcing,
            varying or in any other way dealing with any of the same or any
            power, right or remedy the Security Trustee and/or any Finance Party
            may now or hereafter have from or against the Borrower, any Assignor
            or any other person;

      (h)   any waiver, exercise, omission to exercise, compromise, renewal or
            release of any rights against the Borrower, any Assignor or any
            other person or any compromise, arrangement or settlement with any
            of the same; or

      (i)   any act, omission, event or circumstance which would or may but for
            this provision operate to prejudice, affect or discharge this
            Assignment or the liability of the Borrower or any Assignor
            hereunder.

3.5   NO SUBROGATION

      (a)   Neither the Borrower nor any of the Assignors shall exercise any
            right of subrogation, contribution or any other rights of a surety
            or enforce any security or other right or claim against the Borrower
            or any of the other Assignors (whether in respect of its liability
            under this Assignment or otherwise) or any other person who has
            guaranteed or given any security in respect of the Secured
            Obligations or claim in the insolvency or liquidation of the
            Borrower or any of the Assignors or any such other person in
            competition with the Security Trustee and/or the Finance Parties.

      (b)   If the Borrower or any Assignor receives any payment or benefit in
            breach of this Clause 3.5, it shall hold the same upon trust for the
            Security Trustee as a continuing security for the Secured
            Obligations.

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                                                [Group Assignment of Insurances]

4.    REPRESENTATIONS AND WARRANTIES

4.1   REPRESENTATIONS AND WARRANTIES

      Each of the Borrower and Assignors hereby severally represents and
      warrants to the Security Trustee that for the benefit of the Finance
      Parties:-

      (a)   STATUS: it is a company duly incorporated and validly existing under
            the laws of its respective place of incorporation and has full
            power, authority and legal right to own its property and assets and
            to carry on its business as such business is now being conducted;

      (b)   POWER AND AUTHORITY: it has all legal power and authority to enter
            into this Assignment and perform its obligations under this
            Assignment and all actions (including any corporate action) required
            to authorise the execution and delivery of this Assignment and the
            performance of its obligations under this Assignment have been duly
            taken;

      (c)   LEGAL VALIDITY: this Assignment constitutes or, when so executed and
            delivered, will constitute its legal, valid and binding obligations
            enforceable in accordance with its terms;

      (d)   NON-CONFLICT WITH LAWS: the entry into and performance of this
            Assignment and the transactions contemplated by this Assignment do
            not and will not conflict with or result in (i) a breach of any law,
            judgment or regulation or any official or judicial order, or (ii) a
            breach of the constitutional documents of the Borrower or that
            Assignor (as the case may be), or (iii) a material breach of any
            agreement or document to which the Borrower or that Assignor (as the
            case may be) is a party or which is binding upon it or any of its
            assets or revenues with a monetary value greater than US$500,000,
            nor cause any limitation placed on it or the powers of its directors
            to be exceeded or result in the creation or imposition of any
            Security Interest on any part of the Collateral pursuant to the
            provisions of any such agreement or document;

      (e)   NO CONSENTS: other than the Consents, no consent, authorisation,
            licence or approval of, or registration with or declaration to, any
            governmental or public bodies or authorities or courts in Hong Kong
            or in any relevant jurisdiction is required for or in connection
            with the execution, delivery, validity, enforceability and
            admissibility in evidence in proceeding of this Assignment, or the
            performance by, the Borrower or that Assignor (as the case may be)
            of any of its respective obligations under this Assignment;

      (f)   NO REGISTRATION: it is not necessary in order to ensure the
            legality, validity, enforceability or admissibility in evidence of
            this Deed that it or any other instrument be notarised, filed,
            recorded, registered or enrolled in any court or other authority or
            that any stamp, registration or similar tax or charge be paid on or
            in relation to this Deed and this Deed is in proper form for its
            enforcement in the courts of Hong Kong and all jurisdictions the
            subject of any legal opinion referred to in paragraph 4 of Schedule
            3 of the Facility

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                                                [Group Assignment of Insurances]

            Agreement

      (g)   LITIGATION: except as disclosed in a letter of even date from the
            Borrower to the Security Trustee, no litigation, arbitration or
            administrative proceeding is currently taking place or pending or,
            to the knowledge of the officers of the Borrower or that Assignor
            (as the case may be), threatened against the Borrower or that
            Assignor (as the case may be) or its assets which could, in the
            reasonable opinion of the Majority Finance Parties, materially and
            adversely affect its business, assets or financial condition or its
            respective ability to perform its obligations under this Assignment;

      (h)   WINDING UP AND STRIKING OFF: it has not taken any corporate action
            or no other step has been taken or legal proceedings have been
            commenced or threatened against it for its winding-up, dissolution,
            administration or reorganisation or for the appointment of a
            receiver, administrator, trustee or similar officer of it or all or
            any of its assets or revenues, except as permitted by clause 17.1(g)
            (Winding-up) of the Facility Agreement;

      (i)   TAXES ON PAYMENTS: all payments to be made by it under this
            Assignment may be made by it free and clear of, and without
            deduction for, Taxes and no deductions or withholdings are required
            to be made therefrom save as specified in any legal opinion referred
            to in paragraphs 2, 3 and 4 of Schedule 3 to the Facility Agreement;
            and no Taxes are imposed on or by virtue of the execution or
            delivery by the Borrower or that Assignor of this Assignment or any
            document to be executed or delivered under this Assignment;

      (j)   TAX LIABILITIES: it has complied with all Taxation laws in all
            material respects in all jurisdictions in which it is subject to
            Taxation and has paid all Taxes due and payable by it; no material
            claims are being asserted against it with respect to Taxes;

      (k)   NO DEFAULT:

            (i)   no Default has occurred and is continuing;

            (ii)  it is not, or with the giving of notice or lapse of time or
                  satisfaction of any other condition or any combination
                  thereof, would not be in material breach of or in default
                  under any agreement relating to Financial Indebtedness to
                  which it is a party or by which it may be bound;

      (l)   NO IMMUNITY: it is generally subject to civil and commercial law and
            to legal proceedings and neither it or any of its assets or revenues
            are entitled to any immunity or privilege (sovereign or otherwise)
            from any set-off, judgment, execution, attachment or other legal
            process;

      (m)   COMPLIANCE, WITH CONSENTS AND LICENSES: every consent,
            authorisation, licence or approval required for the time being by it
            in connection with the conduct of its business and the ownership,
            use, exploitation or occupation of its property and assets has been
            applied for and not refused or has been obtained and is in full
            force and effect and there has been no material default in the
            observance of

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                                                [Group Assignment of Insurances]

            the conditions and restrictions (if any) imposed on, or in
            connection with, any of the same which may have a material adverse
            effect on its ability to perform its obligations under this Deed
            and, to the knowledge of its officers, no circumstances have arisen
            whereby any remedial action is likely to be required to be taken by
            it, or at its expense under or pursuant to any law or regulation
            applicable to its business, property or assets;

      (n)   NO FINANCIAL INDEBTEDNESS: it does not have any Financial
            Indebtedness other than as permitted by Clause 16.17 of the Facility
            Agreement;

      (o)   SOLE AND BENEFICIAL OWNER: it is or will be the sole, absolute and
            beneficial owner of the Collateral and it has good and marketable
            title thereto;

      (p)   LEGAL AND BINDING OBLIGATIONS: the obligations of the parties to the
            Insurances are legal, valid and binding and enforceable in
            accordance with its terms;

      (q)   SECURITY INTEREST: no Security Interest exists in any of its rights,
            title, interests or benefits in the Collateral (other than as
            created by this Assignment);

      (r)   THIRD PARTY RIGHT: it has not sold or otherwise disposed of any of
            the Collateral or granted in favour of any other person any interest
            in or any option or other rights in respect of any of the
            Collateral;

      (s)   VALID AND IN FULL FORCE: the Insurances are valid and in full force
            and effect and are not void or voidable; and

      (t)   PREMIUMS: all premiums and other monies (if any) due and payable in
            respect of the Insurances have been duly paid and all covenants,
            terms and conditions contained in the Insurances have been duly
            observed and performed.

4.2   CONTINUING REPRESENTATION AND WARRANTY

      Each of the Borrower and Assignors severally represents and warrants to
      and undertakes with the Security Trustee that the foregoing
      representations and warranties made by them respectively in Clause 4.1(a)
      to (n) inclusive are deemed to be made by the Assignors on each Drawdown
      Date and on each Interest Payment Date with reference to the facts and
      circumstances then existing and that the foregoing representations in
      Clause 4.1(o), (p), (s) and (t) will be true and accurate throughout the
      continuance of this Assignment with reference to the facts and
      circumstances from time to time.

5.    TAXES AND OTHER DEDUCTIONS

5.1   TAX GROSS-UP

      (a)   All sums payable by the Borrower or any Assignor under this
            Assignment shall be paid in full without any restriction or
            condition and free and clear of any Tax or other deductions or
            withholdings of any nature.

      (b)   If at any time the Borrower or any Assignor or any other person is
            required in

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                                                [Group Assignment of Insurances]

            any jurisdiction to make any deduction or withholding in respect of
            Taxes or otherwise from any payment due under this Assignment for
            the account of the Security Trustee or any Finance Party (or if the
            Security Trustee is required to make any such deduction or
            withholding from a payment to any Finance Party), the sum due from
            any Assignor in respect of such payment shall be increased to the
            extent necessary to ensure that, after the making of such deduction
            or withholding, the Security Trustee and each Finance Party receives
            on the due date for such payment (and retains, free from any
            liability in respect of such deduction or withholding) a net sum
            equal to the sum which it would have received had no such deduction
            or withholding been required to be made.

      (c)   The Borrower's and any Assignor's obligations under Clauses 5(a) and
            (b) shall not apply in respect of any Tax on Overall Net Income
            levied on the Security Trustee or any other Finance Party.

      (d)   All Taxes required by law to be deducted or withheld by the Borrower
            or any Assignor from any amounts paid or payable under this Deed
            shall be paid by the Borrower or the relevant Assignor (as the case
            may be) when due (except for such amounts being disputed by the
            Borrower or such Assignor in good faith) to the relevant tax
            authority.

5.2   TAX INDEMNITY

      Each Assignor shall indemnify the Security Trustee and each other Finance
      Party against any losses or costs incurred by any of them by reason of:

      (a)   any failure of any Assignor or any other person to make any such
            deduction or withholding referred to in Clause 5.1; or

      (b)   any increased payment referred to in Clause 5.1 not being made on
            the due date for such payment; or

      (c)   any Taxes which are being disputed by any Assignor and remaining
            unpaid; and

      (d)   any liability suffered (directly or indirectly) for or on account of
            Tax by that Finance Party in respect of any payment received or
            receivable or deemed to be received or receivable under this Deed.

5.3   EVIDENCE OF PROOF

      Each of the Borrower and Assignors shall promptly deliver to the Security
      Trustee any receipts, certificates or other proof evidencing the amounts
      (if any) paid or payable in respect of any deduction or withholding as
      aforesaid. Any certificate or determination of the Security Trustee
      showing in reasonable details the calculations made by the Security
      Trustee as to any amount for the purposes of this Clause 5 shall, in the
      absence of manifest error, be conclusive and binding on each Borrower or
      Assignor, as the case may be.

                                     - 10 -
<PAGE>

                                                [Group Assignment of Insurances]

5.4   TAX CREDIT

      If an Assignor or the Borrower, as the case may be, makes a Tax payment
      and the relevant Finance Party determines that:-

      (a)   a Tax Credit is attributable either to an increased payment of which
            that Tax payment forms part, or to that Tax payment; and

      (b)   that Finance Party has obtained, utilised and retained that Tax
            Credit,

      the Finance Party shall pay an amount to that Assignor or the Borrower, as
      the case may be, which that Finance Party determines will leave it (after
      that payment) in the same after-Tax position as it would have been in had
      the Tax payment not been required to be made by that Assignor or the
      Borrower, as the case may be.

6.    COSTS, CHARGES AND EXPENSES

6.1   COSTS, CHARGES AND EXPENSES

      Each of the Borrower and Assignors shall from time to time forthwith on
      demand pay to or reimburse the Security Trustee and the Finance Parties
      for:

      (a)   all expenses (including legal, printing and out-of-pocket expenses)
            reasonably incurred by the Security trustee or any other Finance
            Party in connection with the negotiation, preparation and execution
            of this deed and any amendment or extension of or the granting of
            any waiver or consent under this Deed; and

      (b)   all costs, charges and expenses (including legal fees) on a full
            indemnity basis properly incurred by the Security Trustee or any
            other Finance Party in connection with the enforcement of or
            preservation of any rights under this Assignment unless and to the
            extent such costs, charges and expenses results directly from the
            gross negligence, fraud or wilful misconduct of the Security Trustee
            or any other Finance Party,

      and until payment of the same in full, all such costs, charges and
      expenses shall be secured by this Assignment.

6.2   STAMP DUTY

      Each of the Borrower and Assignors shall pay all stamp, documentary,
      registration or other like duties or taxes (including any duties or taxes
      payable by the Security Trustee or any Finance Party) imposed on or in
      connection with this Deed and shall indemnify each of the Security Trustee
      and the other Finance Parties against any liability arising by reason of
      any delay or omission by the Borrower and/or Assignors to pay such duties
      or taxes.

                                     - 11 -
<PAGE>

                                                [Group Assignment of Insurances]

7.    UNDERTAKINGS

      Each of the Borrower and Assignors hereby jointly and severally undertakes
      and agrees with the Security Trustee for the benefit of the Security
      Trustee and the Finance Parties throughout the continuance of this
      Assignment and so long as the Secured Obligations or any part thereof
      remains owing that, unless the Security Trustee otherwise agrees in
      writing, it will:-

      (a)   perform all its obligations under the Insurances;

      (b)   notify the Security Trustee of any breach by any party to the
            Insurances;

      (c)   give to the Security Trustee upon receipt copies of all cover notes,
            policies, notices, requests and other documents sent or received
            with respect to the Insurances;

      (d)   give to the Security Trustee such information regarding the
            Collateral as the Security Trustee shall reasonably require;

      (e)   do or permit to be done every act or thing which the Security
            Trustee may require to be done for the purpose of enforcing the
            rights of the Security Trustee hereunder and will allow its name to
            be used as and when required for that purpose;

      (f)   not amend or agree to amend the Insurances or waive any of its
            rights thereunder, except in accordance with Clause 16.5 of the
            Facility Agreement;

      (g)   not create or attempt or agree to create or permit to exist any
            Security Interest over all or any part of the Collateral or any
            interest therein or otherwise sell, transfer, assign, deal with or
            dispose of all or any part of the Collateral (except under or
            pursuant to this Assignment) or attempt or agree to do any of the
            same;

      (h)   not sell or agree to sell, transfer or assign, any part of the
            Collateral;

      (i)   not grant in favour of any other person any interest in or any
            option or other rights in respect of any of the Collateral;

      (j)   not do or cause or permit to be done anything which may in any way
            depreciate, jeopardise or otherwise prejudice the value of the
            Security Trustee's security hereunder;

      (k)   punctually pay all premiums or sums of money necessary for effecting
            such Insurances and endorse over, produce or deliver to the Security
            Trustee all policy or policies of insurance and the receipts for
            every such payment;

      (l)   promptly advise the Security Trustee upon any of the following:

            (i)   if any Insurer cancels, purports to cancel or gives notice of
                  cancellation of any of the Insurances;

                                     - 12 -
<PAGE>

                                                [Group Assignment of Insurances]

            (ii)  any purported or actual variation or alteration to the terms
                  of or termination or expiry of any of the Insurances;

            (iii) any default in the payment of any premium or call;

            (iv)  knowledge of any act or omission or event which might
                  invalidate or render unenforceable in whole or in part of any
                  of the Insurances;

      (m)   take all reasonable steps which may be necessary or expedient to
            keep the Insurances in full force and effect in such manner and to
            such extent as is reasonable and customary for a business enterprise
            engaged in the same or similar business and in the same locations as
            the Borrower and the relevant Assignor, and whose practice is not to
            self-insure;

      (n)   not, without the prior written consent of the Security Trustee,
            waive, release, settle, compromise or abandon any claim made in
            relation to or under the Insurances or do or omit to do any other
            act or thing whereby the recovery in full of any amounts in respect
            of the Insurances as and when they become payable may be impeded;
            and

      (o)   subject to Clause 16.5 of the Facility Agreement, renew all policies
            or contracts of Insurances within fourteen (14) days of the expiry
            of such policies or contracts.

8.    ENFORCEMENT

8.1   EVENTS OF DEFAULT

      The security created by this Assignment shall become enforceable
      immediately upon the occurrence of an Event of Default which is
      continuing. For the purposes of this Clause, each of the following events
      and circumstances shall be an Event of Default:-

      (a)   any Event of Default as that term is defined in the Facility
            Agreement; or

      (b)   if the Borrower or any Assignor purports or attempts to create any
            Security Interest (except under or as permitted by this Assignment)
            over all or any part of the Collateral or any third party asserts a
            claim in respect thereof.

8.2   ENFORCEMENT OF SECURITY

      Upon this Assignment becoming enforceable the Security Trustee may, at any
      time or times thereafter and without further notice or restriction,
      withdraw, transfer or otherwise dispose of all or any part of the monies
      in the Deposit Account in or towards the payment or discharge of the
      Secured Obligations in accordance with Clause 9, for this purpose, the
      Security Trustee may, at the expense of the Borrower or the Assignors,
      convert all or any part of such monies into other currencies. The above
      provisions apply notwithstanding any other terms upon which such monies
      may have been deposited or that any such monies may have been deposited
      for a fixed period or be subject to a period of notice and that the fixed
      period or period of notice may not have expired or

                                     - 13 -
<PAGE>

                                                [Group Assignment of Insurances]

      that notice or sufficient notice may not have been given.

8.3   AMENDMENT

      Any amendment or waiver of any provision of this Assignment and any waiver
      of any default under this Assignment shall only be effective if made in
      writing and signed by the Security Trustee.

8.4   EVIDENCE OF DEBT

      Any statement of account signed as correct by the Security Trustee showing
      any amount due under the Facility Agreement or under any other Finance
      Document or under this Assignment shall, in the absence of manifest error,
      be conclusive evidence of the amount so due.

9.    APPLICATION OF PROCEEDS

9.1   APPLICATION

      All monies received by the Security Trustee hereunder shall be applied in
      or towards satisfaction of the Secured Obligations (subject to the prior
      discharge of all liabilities having priority thereto by law) in the
      following order of priority:-

      (a)   in payment or satisfaction of all costs, charges, expenses and
            liabilities properly incurred and payments made by or on behalf of
            the Security Trustee in connection with the exercise of any powers
            hereunder and in preserving or attempting to preserve this security
            or the Collateral and of all outgoings in respect of the Collateral
            paid by the Security Trustee pursuant to this Deed;

      (b)   in payment to the Receiver of all remuneration as may be agreed
            between it and the Security Trustee to be paid to him at, or at any
            time after, its appointment;

      (c)   in or towards reduction of the remaining Secured Obligations in such
            manner as is provided in the Facility Agreement; and

      (d)   the surplus (if any) to the Borrower or the respective Assignor
            Proceeds as the case may be.

9.2   THE DEPOSIT ACCOUNT

      Notwithstanding Clause 9.1, the Borrower and each Assignor shall pay or
            cause to be paid to the credit of the Prepayment Escrow Account all
            Insurance Proceeds received or receivable by it (in respect of any
            one claim but aggregating all claims in respect of the same or
            related incidents) except (i) for all costs or expenses reasonably
            incurred in procuring the recovery of the Insurance Proceeds, which
            it shall be entitled to apply in meeting or relieving the same and
            (ii) to the extent that proceeds of claims under third party
            liability policies are applied directly in discharge of the relevant
            claim and provided that after the occurrence of an Event of Default
            which is continuing, all Insurance Proceeds

                                     - 14 -
<PAGE>

                                                [Group Assignment of Insurances]

            received or receivable by the Borrower or any Assignor, shall be
            paid or caused to be paid directly into the Prepayment Escrow
            Account (except to the extent that proceeds of claim under third
            party liability policies are applied by the Insurers directly in
            discharge of the relevant claim for the purposes of making a
            Mandatory Prepayment under Clause 7.5B of the Facility Agreement).

10.   INDEMNITY

10.1  GENERAL INDEMNITY

      Each of the Borrower and Assignors hereby jointly and severally undertakes
      with the Security Trustee to indemnify and keep indemnified the Security
      Trustee, Finance Parties and each of them (each an "INDEMNITEE") from and
      against all costs, charges and expenses which the Security Trustee or such
      Finance Party shall properly incur in connection with the exercise of any
      powers conferred by this Assignment or the perfection, preservation or
      enforcement of the security created by this Assignment (unless and to the
      extent that any of the foregoing results directly from the fraud, gross
      negligence or wilful misconduct of that indemnitee).

10.2  CURRENCY INDEMNITY

      (a)   If an amount due to the Security Trustee or any Finance Party from
            the Borrower or any Assignor under the Facility Agreement and/or any
            other Finance Document (a "SUM"), or any order, judgment or award
            given or made in relation to a sum, has to be converted from the
            currency (the "FIRST CURRENCY") in which that sum is payable into
            another currency (the "SECOND CURRENCY") for the purpose of:

            (i)   making or filing a claim or proof against the Borrower or any
                  Assignor;

            (ii)  obtaining or enforcing an order, judgment or award in relation
                  to any litigation or arbitration proceedings,

                  the Borrower and any Assignor shall, as an independent
                  obligation to the Security Trustee or such Finance Party,
                  indemnify the Security Trustee or such Finance Party to whom
                  that sum is due against any cost, loss or liability arising
                  out of or as a result of the conversion including any
                  discrepancy between (A) the rate of exchange used to convert
                  that sum from the first currency into the second currency and
                  (B) the rate or rates of exchange available to that person at
                  the time of its receipt of that sum.

      (b)   Each of the Borrower and Assignors hereby waives any right it may
            have in any jurisdiction to pay any amount under the Facility
            Agreement and/or any other Finance Document in a currency or
            currency unit other than that in which it is expressed to be
            payable.

10.3  PAYMENT AND SECURITY

      The Security Trustee or any Finance Party may retain and pay out of any
      money in the

                                     - 15 -
<PAGE>

                                                [Group Assignment of Insurances]

      hands of the Security Trustee or such Finance Party all sums necessary to
      effect the indemnity contained in this Clause and all sums payable by any
      Assignor under this Clause shall form part of the monies hereby secured.

11.   SUSPENSE ACCOUNT

      The Security Trustee may, notwithstanding Clause 9 (Application of
      Proceeds), place and keep any monies received under this Assignment,
      before or after the insolvency of the Borrower or any Assignor, to the
      credit of a suspense account in order to preserve the rights of the
      Security Trustee or the Finance Parties to sue or prove for the whole
      amount in respect of claims against the Borrower and any Assignor or any
      other person.

12.   SET OFF

      (a)   Without prejudice to any right of set-off, combination of accounts,
            lien or other rights which the Security Trustee or any Finance Party
            is at any time entitled whether by operation of law or contract or
            otherwise, the Security Trustee and each Finance Party may (but
            shall not be obliged to) set off against any obligation of the
            Borrower or any Assignor due and payable by it hereunder without
            prior notice any moneys held by the Security Trustee or such Finance
            Party for the account of the Borrower or any Assignor at any office
            of the Security Trustee or such Finance Party anywhere and in any
            currency. The Security Trustee or such Finance Party may effect such
            currency exchanges as are appropriate to implement such set-off.

      (b)   If the obligations are in different currencies, the Security Trustee
            or any Finance Party may convert either obligation at a market rate
            of exchange in its usual course of business for the purpose of the
            set-off.

13.   POWER OF ATTORNEY

13.1  POWER OF ATTORNEY

      Each of the Borrower and Assignors irrevocably appoints the Security
      Trustee and any persons deriving title under it by way of security jointly
      and severally to be its attorney (with full power of substitution) and in
      its name or otherwise on its behalf and as its act and deed to sign, seal,
      execute, deliver, perfect and do all deeds, instruments, acts and things
      which may be required or which the Security Trustee shall think proper or
      expedient for carrying out any obligations imposed on the Borrower or any
      Assignor hereunder or for exercising, following the security constituted
      by this Deed becoming enforceable, any of the powers conferred by this
      Assignment or for giving to the Security Trustee the full benefit of this
      security and so that this appointment shall operate to authorise the
      Security Trustee to do on behalf of the Borrower and any Assignor anything
      it can lawfully do by an attorney. Each of the Borrower and Assignors
      ratifies and confirms and agrees to ratify and confirm any deed,
      instrument, act or thing which such attorney or substitute may execute or
      do in exercising its powers under this Clause.

                                     - 16 -
<PAGE>

                                                [Group Assignment of Insurances]

13.2  DELEGATION

      The Security Trustee may delegate to any person all or any of the rights
      or powers conferred on it by this Assignment or by law. Any such
      delegation may be made upon such terms and conditions (including power to
      sub-delegate) as the Security Trustee or the Receiver thinks fit.

14.   FURTHER ASSURANCE

      Each of the Borrower and Assignors agrees that at any time and from time
      to time upon the written request of the Security Trustee it will promptly
      and duly execute and deliver any and all such further instruments and
      documents as the Security Trustee may reasonably require for the purpose
      of obtaining the full benefit of this Assignment and of the rights and
      powers herein granted.

15.   NOTICES

15.1  NOTICES

      Any notice or communication under or in connection with this Assignment
      shall be in writing and shall be delivered personally or by prepaid letter
      (airmail if available) or facsimile transmission to the addresses or
      facsimile numbers set out below or at such other address as the recipient
      may have notified to the other parties in writing. Proof of posting or
      despatch of any notice or communication to any party hereto shall be
      deemed to be proof of receipt:-

      (a)   in the case of a letter, on the fifth Business Day after posting if
            airmail or second Business Day if local mail;

      (b)   in the case of a facsimile transmission, on the Business Day
            immediately following the date of despatch with confirmed facsimile
            report.

      All communications or other correspondence between any Assignor and any of
      the Finance Parties in connection with this Assignment shall be made
      through the Security Trustee.

15.2  ADDRESSES

      Notices or communications shall be sent to the following addresses:-

      To the Borrower:-

      Name                       Asia Netcom Corporation Limited
      Address                    46/F Cheung Kong Center
                                 2 Queen's Road Central
                                 Hong Kong

                                     - 17 -
<PAGE>

                                                [Group Assignment of Insurances]

      Fax                        (852) 2121 2929
      Attention                  Gregory Freiberg/Wenlong Sun

      With a copy to:            Asia Netcom Singapore Pte Limited
                                 2 Shenton Way #11-01
                                 SGX Centre 1
                                 Singapore 068804

      Fax                        (65) 6233 6390
      Attention                  Oliver Ao

      To any Assignor:-

      Name                       c/o Asia Netcom Corporation Limited
      Address                    46/F Cheung Kong Center
                                 2 Queen's Road Central
                                 Hong Kong

      Fax                        (852) 2121 2929
      Attention                  Gregory Freiberg/ Wenlong Sun

      With a copy to:            Asia Netcom Singapore Pte Limited
                                 2 Shenton Way #11-01
                                 SGX Centre 1
                                 Singapore 068804

      Fax                        (65) 6233 6390
      Attention                  Oliver Ao

      To the Security Trustee:-

      Name                       Industrial and Commercial Bank of China
                                 (Asia) Limited
      Address                    10/F, ICBC Asia Building
                                 122-126 Queen's Road Central
                                 Hong Kong

      Fax                        (852) 2851 9361
      Attention                  Ms. Esther Cheng/ Ms. Amy Wong

15.3  LANGUAGE

      Each notice or document referred to in this Assignment or to be delivered
      under this Assignment shall be in the English language.

16.   WAIVERS, AMENDMENTS AND CONSENTS, REMEDIES, SEVERABILITY, ASSIGNMENT AND
      COUNTERPARTS

                                     - 18 -
<PAGE>

                                                [Group Assignment of Insurances]

16.1  WAIVERS

      No failure or delay on the part of the Security Trustee or any Finance
      Party to exercise any power, right or remedy under this Assignment shall
      operate as a waiver thereof, nor shall any single or partial exercise by
      the Security Trustee or any Finance Party of any power, right or remedy
      preclude any other or further exercise thereof or the exercise of any
      other power, right or remedy.

16.2  AMENDMENTS AND CONSENTS

      (a)   Any amendment of any provision of this Assignment shall only be
            effective if made in accordance with provisions with this Assignment
            and if all the parties hereto so agree in writing and any waiver of
            any breach or default under this Assignment shall only be effective
            if the Security Trustee acting on the instructions of the Finance
            Parties or the Majority Finance Parties (as the case may be) agrees
            in writing. Any consent by the Security Trustee under this
            Assignment must be made in writing.

      (b)   Any such waiver or consent may be given subject to any conditions
            thought fit by the Security Trustee acting on the instructions of
            the Finance Parties or the Majority Finance Parties, as the case may
            be, and shall be effective only in the instance and for the purpose
            for which it is given.

16.3  REMEDIES

      The remedies provided in this Assignment are cumulative and are not
      exclusive of any remedies provided by law.

16.4  SEVERABILITY

      If any provision of this Assignment is prohibited or unenforceable in any
      jurisdiction such prohibition or unenforceability shall not invalidate the
      remaining provisions hereof or affect the validity or enforceability of
      such provision in any other jurisdiction.

16.5  ASSIGNMENT

      The Security Trustee may assign its rights under this Assignment in
      accordance with the provisions of the Facility Agreement. None of the
      Borrower or the Assignor shall assign any of its respective rights
      hereunder without the prior written consent of the Security Trustee.

16.6  COUNTERPARTS

      This Assignment may be executed in any number of counterparts including by
      facsimile and all of which taken together shall constitute one and the
      same instrument, and any party hereto may execute this Assignment by
      signing any such counterpart.

                                     - 19 -
<PAGE>

                                                [Group Assignment of Insurances]

16.7  It is intended that this document takes effect as a deed notwithstanding
      the fact that a party may only execute this document under hand.

17.   GOVERNING LAW AND JURISDICTION

17.1  GOVERNING LAW

      This Assignment is governed by and construed in accordance with the laws
      of Hong Kong.

17.2  SUBMISSION TO JURISDICTION

      For the benefit of the Security Trustee and the Finance Parties, each of
      the Borrower and Assignors irrevocably agrees that the courts of Hong Kong
      are to have jurisdiction to settle any disputes which may arise out of or
      in connection with this Assignment and that, accordingly, any legal action
      or proceedings arising out of or in connection with this Assignment
      ("PROCEEDINGS") may be brought in those courts and each of the Borrower
      and Assignors irrevocably submits to the jurisdiction of those courts.

17.3  OTHER JURISDICTIONS

      Nothing in this Clause 17 (Governing Law and Jurisdiction) shall limit the
      right of the Security Trustee or any Finance Party to take Proceedings
      against the Borrower or any Assignor in any other court of competent
      jurisdiction nor shall the taking of Proceedings in one or more
      jurisdictions preclude the Security Trustee or any Finance Party from
      taking Proceedings in any other jurisdiction, whether concurrently or not.

17.4  WAIVER OF INCONVENIENT FORUM

      Each of the Borrower and Assignors irrevocably waives any objection which
      it may at any time have to the laying of the venue of any Proceedings in
      any court referred to in this Clause 17 (Governing Law and Jurisdiction)
      and any claim that any such Proceedings have been brought in an
      inconvenient forum.

17.5  PROCESS AGENT

      Each of the Borrower and Assignors hereby irrevocably appoints Asia Netcom
      Asia Pacific Commercial Limited of 46th Floor, Cheung Kong Centre, 2
      Queen's Road Central, Hong Kong to receive, for it and on its behalf,
      service of process in any Proceedings in Hong Kong. Such service shall be
      deemed completed on delivery to the process agent whether or not it is
      forwarded to and received by the Borrower or that Assignor. If for any
      reason the process agent ceases to be able to act as such or not longer
      has an address in Hong Kong, each of the Borrower and Assignors
      irrevocably agrees to appoint a substitute process agent acceptable to the
      Security Trustee, and to deliver to the Security Trustee a copy of the new
      process agent's acceptance of that appointment, within 30 days.

17.6  SERVICE

                                     - 20 -
<PAGE>

                                                [Group Assignment of Insurances]

      Each of the Borrower and Assignors irrevocably consents to any process in
      any Proceeding anywhere being served by mailing a copy by post in
      accordance with Clause 15 (Notices). Nothing shall affect the right to
      serve any process in any other manner permitted by law.

17.7  WAIVER OF IMMUNITIES

      To the extent that the Borrower or any Assignor has or hereafter may
      acquire any immunity (sovereign or otherwise) from any legal action, suit
      or proceeding, from jurisdiction of any court or from set-off or any legal
      process (whether service or notice, attachment prior to judgment,
      attachment in aid of execution of judgment, execution of judgment or
      otherwise) with respect to itself or any of its property, each of the
      Borrower and Assignors hereby irrevocably waives and agrees not to plead
      or claim such immunity in respect of its obligations under this
      Assignment.

IN WITNESS whereof this Assignment has been executed by the parties hereto and
is intended to be and is hereby delivered by the Borrower and each Assignor as
its deed on the day and year first above written.

                                     - 21 -
<PAGE>

                                                [Group Assignment of Insurances]

                                   SCHEDULE 1

                          FORM OF NOTICE OF ASSIGNMENT

(for attachment by way of endorsement to the relevant policy in respect of the
Insurances)

To: [the Insurer(s)]

Copy to: Industrial and Commercial Bank of China (Asia) Limited (as Security
Trustee)

[INSERT POLICY NUMBER OF INSURANCES AND OTHER DETAILS OF POLICY OF INSURANCES
(THE "POLICY")]

[Name of Borrower or Assignor], (the "INSURED") referred to in this Policy,
HEREBY GIVES NOTICE that by a Group Assignment of Insurances dated
______________ 2004 (a copy of which is attached hereto) (the "ASSIGNMENT") and
executed by us, among others, in favour of Industrial and Commercial Bank of
China (Asia) Limited, as facility agent and security trustee (the "SECURITY
TRUSTEE"), there has been assigned by us to the Security Trustee all our right,
title, interest and benefit in and the Policy stated above whereon this Notice
is endorsed.

Following an event of default as notified by the Security Trustee, we hereby
authorise and instruct you, upon receiving a notice from the Security Trustee
requesting for proceeds of the insurance under the Policy to be paid over to the
Security Trustee, to pay directly to the Security Trustee all payments then due
to us under the Policy into such account as the Security Trustee shall direct or
to such person and in such manner as the Security Trustee may from time to time
instruct.

Please note that the authority and instructions herein contained cannot be
revoked or varied by us without the prior written consent of the Security
Trustee.

This Notice is governed by the laws of Hong Kong.

Please countersign one copy of this Notice to record your acknowledgment of
receipt and to record that you will act in accordance with the terms hereof.

Dated _____________ 2004.

______________________________
Director
For and on behalf of
[Borrower/Assignor]

                                     - 22 -
<PAGE>

                                                [Group Assignment of Insurances]

We acknowledge receipt of the above notice of assignment and we agree to act in
accordance with its terms.

For and on behalf of

_____________________________
[Name of Insurer]

                                     - 23 -
<PAGE>

                                                [Group Assignment of Insurances]

                                   SCHEDULE 2

                                  THE ASSIGNORS

<TABLE>
<CAPTION>
NAME                                PLACE OF INCORPORATION             REGISTERED OFFICE
----                                ----------------------             -----------------
<S>                                 <C>                                <C>
East Asia Netcom Ltd.                     Bermuda                       Clarendon House
                                                                        2 Church Street
                                                                        HM11 Bermuda
</TABLE>

                                     - 24 -
<PAGE>

                                                [Group Assignment of Insurances]

                                   SCHEDULE 3

             FORM OF LOSS PAYABLE AND NOTICE OF CANCELLATION CLAUSE

By a Deed of Assignment of Insurances, [-] (the "Assignor") assigned all its
right, title, interest and benefit in and to this policy/contract of insurance
and the benefits and proceeds hereof including all claims of whatever nature and
returns of premiums to the Industrial and Commercial Bank of China (Asia)
Limited (the "Security Trustee") acting on its own behalf and as agent and
trustee for the Lenders (as defined therein). Until notice in writing to the
contrary is received by the insurer or insurance broker hereunder from the
Security Trustee, all the proceeds of any claim for an amount not exceeding
US$1,000,000 shall be paid to the Assignor and all the proceeds of any claim for
an amount exceeding US$1,000,000 shall be paid to the Security Trustee.
Following receipt of such notice in writing, all proceeds payable hereunder
shall be paid directly to the Security Trustee.

The Security Trustee shall be advised:

      (i)   if any insurer under this policy/contract gives notice of
            cancellation of any insurance hereunder, at least fourteen (14) days
            before any such cancellation is to take effect;

      (ii)  of any proposed alteration in or termination or expiry of any such
            insurance at least fourteen (14) days before such alteration,
            termination or expiry is to take effect;

      (iii) promptly of any default in the payment of any premium or call;

      (iv)  promptly of any act or omission or of any event of which any insurer
            hereunder has knowledge and which might invalidate or render
            unenforceable in whole or in part such insurance.

No cancellation, termination or expiry of or alteration to any insurance
hereunder shall be effective as against the Security Trustee or the Lenders
unless the relevant provision of this Clause have been complied with in full.

The rights of the Security Trustee and the Lenders under this policy/contract of
insurance shall not be prejudiced by any act or neglect of the Assignor or any
other person nor by any foreclosure or other proceedings.

The Security Trustee may, but shall not be required to, pay any insurance
premiums unpaid by the Assignor.

                                     - 25 -
<PAGE>

                                                [Group Assignment of Insurances]

                                 SIGNATURE PAGE

THE BORROWER

SIGNED, SEALED AND DELIVERED                   )
as a Deed by its duly authorised attorney      )
Tung, Hsiao-Chi                                ) /s/ Tung, Hsiao-Chi
for and on behalf of                           )
ASIA NETCOM CORPORATION LIMITED                )
in the presence of:-                           )

/s/ Corina Delicia Hoon
    Corina Delicia Hoon
    Solicitor
    RICHARDS BUTLER
    20/F Alexandra House
    Hong Kong SAR

THE ASSIGNOR

SIGNED, SEALED AND DELIVERED                   )
as a Deed by its duly authorised attorney      )
Tung, Hsiao-Chi                                ) /s/ Tung, Hsiao-Chi
for and on behalf of                           )
EAST ASIA NETCOM LTD.                          )
in the presence of:-                           )

/s/ Corina Delicia Hoon
    Corina Delicia Hoon
    Solicitor
    RICHARDS BUTLER
    20/F Alexandra House
    Hong Kong SAR

THE SECURITY TRUSTEE

SIGNED BY                                      )
Wang Yan, Wilson Wan                           ) /s/ Wang Yan     /s/ Wilson Wan
for and on behalf of                           )
INDUSTRIAL AND COMMERCIAL                      )
BANK OF CHINA (ASIA) LIMITED                   )
in the presence of:-                           )

/s/ Corina Delicia Hoon
    Corina Delicia Hoon
    Solicitor
    RICHARDS BUTLER
    20/F Alexandra House
    Hong Kong SAR

                                     - 26 -<PAGE>

                                                                   EXHIBIT 10.45

                                                                  Execution Copy

                               Dated 27 July 2004

                         ASIA NETCOM CORPORATON LIMITED
                                  (as Assignor)

                                  in favour of

             INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED
                              (as Security Trustee)

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

                               SECURITY ASSIGNMENT
                                in respect of the
                         Deed of Right of First Refusal

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

                                 RICHARDS BUTLER
                                    HONG KONG

<PAGE>

                                                           [Security Assignment]

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE NO.                                        CLAUSE HEADING                                            PAGE NO.
----------                                        --------------                                            --------
<S>          <C>                                                                                            <C>
1.           DEFINITIONS AND CONSTRUCTION.................................................................      1

2.           ASSIGNMENT...................................................................................      3

3.           CONTINUING AND INDEPENDENT SECURITY..........................................................      4

4.           REPRESENTATIONS AND WARRANTIES...............................................................      6

5.           TAXES AND OTHER DEDUCTIONS...................................................................      9

6.           COSTS, CHARGES AND EXPENSES..................................................................     10

7.           UNDERTAKINGS.................................................................................     11

8.           ENFORCEMENT..................................................................................     12

9.           APPLICATION OF PROCEEDS......................................................................     13

10.          INDEMNITY....................................................................................     13

11.          SUSPENSE ACCOUNT.............................................................................     14

12.          SET OFF......................................................................................     14

13.          POWER OF ATTORNEY............................................................................     14

14.          FURTHER ASSURANCE............................................................................     15

15.          NOTICES......................................................................................     15

16.          WAIVERS, AMENDMENTS AND CONSENTS,  REMEDIES, SEVERABILITY, ASSIGNMENT AND COUNTERPARTS.......     16

17.          GOVERNING LAW AND JURISDICTION...............................................................     17

SCHEDULE 1 - PART I: FORM OF NOTICE OF ASSIGNMENT.........................................................     20

SCHEDULE 2 - PART 2: FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT................................................     20

SIGNATURE PAGE............................................................................................     22
</TABLE>

<PAGE>

                                                           [Security Assignment]

THIS DEED OF SECURITY ASSIGNMENT is made on 27 July 2004

BETWEEN:-

(1)   ASIA NETCOM CORPORATION LIMITED, a company incorporated under the laws of
      Bermuda whose registered office is situate at Clarendon House, 2 Church
      Street, Hamilton, HM11 Bermuda (the "ASSIGNOR"); and

(2)   INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED, a company
      incorporated under the laws of Hong Kong acting through its head office at
      ICBC Asia Building, 122-126 Queen's Road Central, Hong Kong acting on its
      own behalf and as facility agent and trustee for and on behalf of the
      Finance Parties (the "SECURITY TRUSTEE").

WHEREAS:

(A)   By a facility agreement signed on 2nd December, 2003 (but held undated in
      escrow) as released from escrow and amended and restated by the
      Supplemental Amendment and Restatement Deed (the "FACILITY AGREEMENT"),
      entered into by (1) the Assignor, as borrower; (2) the banks and financial
      institutions named therein as lenders (the "LENDERS"); (3) Industrial and
      Commercial Bank of China (Asia) Limited as arranger; and (4) the Security
      Trustee as facility agent, the Finance Parties have agreed, upon and
      subject to the terms of the Facility Agreement, to make available to the
      Assignor a term loan facility of up to US$150,000,000 (the "FACILITY") for
      the purposes more particularly specified therein.

(B)   The Security Trustee is acting as facility agent for the Finance Parties
      pursuant to the Facility Agreement and as security trustee for the Finance
      Parties pursuant to this Deed and the other Finance Documents.

(C)   It is a condition precedent to the availability of the Facility under the
      Facility Agreement that the Assignor shall have executed and delivered
      this Deed to the Security Trustee assigning its rights, title and interest
      in and to the Assigned Agreement (as defined below) by way of security.

NOW THIS DEED WITNESSES  as follows:-

1.    DEFINITIONS AND CONSTRUCTION

1.1   TERMS DEFINED

      In this Deed, unless the context otherwise requires, terms used shall have
      the meanings defined in the Facility Agreement and:-

      "ASSIGNED AGREEMENT" means the Deed of Right of First Refusal.

                                     - 1 -
<PAGE>

                                                           [Security Assignment]

      "COLLATERAL" means all of the right, title, interest and benefit, present
      and future, of the Assignor in and to the Assigned Agreement including,
      without limitation:-

      (i)   the right to receive any and all moneys due or to become due to the
            Assignor under or pursuant to the Assigned Agreement upon the
            occurrence of an Event of Default;

      (ii)  all claims in respect of any breach of the Assigned Agreement
            (including any claims for liquidated damages);

      (iii) the right (but not the obligation) of the Assignor to perform and to
            compel performance of the Assigned Agreement;

      (iv)  any right of the Assignor to rescind or otherwise terminate the
            Assigned Agreement; and

      (v)   any right of the Assignor to give and receive notices, requests and
            consents, to exercise discretion and to exercise all options and
            elections under the Assigned Agreement.

      "DEED OF RIGHT OF FIRST REFUSAL" means the deed of right of first refusal
      entered or to be entered into between China Netcom Corporation (Hong Kong)
      Limited and the Assignor.

      "RECEIVER" means any receiver, manager, receiver and manager or other
      similar officer appointed by the Security Trustee in respect of the
      Security Interest hereby granted.

      "SECURED OBLIGATIONS" means any and all moneys, liabilities and
      obligations (whether actual or contingent, whether now existing or
      hereafter arising, whether or not for the payment of money, and including,
      without limitation, any obligation or liability to pay damages) which are
      or may become due, owing or incurred by the Assignor or any other Security
      Party which is a member of the CNC HK Group to any Finance Parties or any
      of them under or pursuant to the Finance Documents and/or all other
      obligations hereby secured.

1.2   TRUST

      All rights, benefits, interests, powers and discretions granted to or
      conferred on the Security Trustee pursuant to this Deed shall be held by
      the Security Trustee on trust for the benefit of itself as Security
      Trustee and each Finance Party from time to time. The Security Trustee may
      do all acts within its powers to administer and manage the trust
      constituted by this Clause including any full or partial release and/or
      re-assignment by deed of the rights, benefits and interests conferred by
      Clause 2.1 or the release of all or any part of the Collateral from this
      Deed. The trust constituted by this Clause shall come into existence on
      the date of this Deed and shall last for so long as any of the Secured
      Obligations remain outstanding provided that for the purposes of the rule
      against perpetuities, the perpetuity period applicable to the trust
      constituted under this Clause and any dispositions made or to be made
      pursuant to this Deed and this trust, is hereby specified as a period of
      eighty (80) years less one (1) day from the date of this

                                     - 2 -
<PAGE>

                                                           [Security Assignment]

      Deed.

1.3   CLAUSE HEADINGS

      Clause headings and the table of contents are for ease of reference only
      and shall be ignored in the interpretation of this Deed.

1.4   CONSTRUCTION

      In this Deed, unless the context otherwise requires:-

      (a)   Clause 1.3 of the Facility Agreement shall be deemed incorporated in
            this Deed mutatis mutandis as if set out separately in this Deed;
            and

      (b)   references to the "ASSIGNOR", the "SECURITY TRUSTEE" or any "FINANCE
            PARTY" include, where the context permits, include their respective
            successors and transferees and permitted assigns in accordance with
            their respective interests.

2.    ASSIGNMENT

2.1   ASSIGNMENT

      In consideration of the Lenders agreeing to make the Facility available to
      the Assignor upon the terms and conditions of the Facility Agreement and
      as a continuing security for the due and punctual performance and
      discharge of the Secured Obligations, the Assignor, as beneficial owner,
      hereby assigns absolutely by way of security all of its rights, title and
      interest in and to the Collateral to the Security Trustee.

2.2   NOTICE OF ASSIGNMENT

      The Assignor shall forthwith upon execution of this Deed deliver a notice
      of assignment, in the form set out in Part I of the Schedule, to each of
      the other parties to the Assigned Agreement and shall request that each
      such other party to the Assigned Agreement executes and delivers to the
      Security Trustee an acknowledgement of assignment in the form set out in
      Part II of the Schedule.

2.3   PERFORMANCE AND INDEMNITY

      Notwithstanding the foregoing, the Assignor shall remain liable to perform
      all the obligations to be performed by it in respect of the Assigned
      Agreement and shall discharge fully its obligations thereunder as they
      become due and neither the Security Trustee nor any of the Finance Parties
      shall have any obligation of any kind whatsoever thereunder or be under
      any liabilities whatsoever in the event of any failure to perform their
      obligations thereunder and the Assignor hereby indemnifies and agrees to
      keep indemnified the Security Trustee, the other Finance Parties and each
      of them from and against any such liability.

2.4   RELEASE AND TRANSFER

                                     - 3 -
<PAGE>

                                                           [Security Assignment]

      (a)   The Security Trustee shall, at the request and cost of the Assignor
            and in such form as the Security Trustee shall reasonably approve,
            release and transfer to the Assignor, the Collateral then the
            subject of the Security Interest constituted by this Deed upon the
            full performance and discharge of the Secured Obligations to the
            satisfaction of the Security Trustee and the Finance Parties.

      (b)   Notwithstanding any discharge, release or settlement from time to
            time between the Security Trustee and/or any other Finance Party and
            the Assignor, if any security, disposition or payment granted or
            made to the Security Trustee and/or any other Finance Party in
            respect of the Secured Obligations by the Assignor or any other
            person is avoided or set aside or ordered to be surrendered, paid
            away, refunded or reduced by virtue of any provision, law or
            enactment relating to bankruptcy, insolvency, liquidation,
            winding-up, composition or arrangement for the time being in force
            or for any other reason, the Finance Parties shall be entitled
            thereafter to enforce this Deed as if no such discharge, release or
            settlement had occurred.

2.5   REGISTRATION

      The Assignor hereby authorises the Security Trustee forthwith upon
      execution of this Deed to procure the delivery to the Companies Registry
      in Hong Kong or other competent authority in the place of incorporation of
      the Assignor of the particulars of this Deed.

3.    CONTINUING AND INDEPENDENT SECURITY

3.1   CONTINUING SECURITY

      This Deed and the security hereby created shall remain in full force and
      effect by way of a continuing security notwithstanding the insolvency or
      liquidation or any incapacity or change in the constitution or status of
      the Assignor or any other person and in particular but without limitation
      shall not be, nor be considered as, satisfied by any intermediate
      discharge or payment on account of any liabilities or any settlement of
      accounts between the Assignor and the Security Trustee and/or any Finance
      Party.

3.2   ADDITIONAL SECURITY

      This Deed and the security hereby created shall be in addition to and not
      in substitution for or derogation of any other Security Interest,
      guarantee or other security (whether given by the Assignor or otherwise)
      now or from time to time hereafter held by the Security Trustee and/or any
      Finance Party in respect of or in connection with the Secured Obligations.

3.3   UNRESTRICTED ENFORCEMENT

      The Security Trustee need not before exercising any of the rights, powers
      or remedies conferred upon it by this Deed or by law (i) take action or
      obtain judgment against the

                                     - 4 -
<PAGE>

                                                           [Security Assignment]

      Assignor, or any other person in any court, (ii) make or file any claim or
      prove in a winding-up or liquidation of the Assignor or of any other
      person or (iii) enforce or seek to enforce the recovery of the monies and
      liabilities hereby secured by any other security or other rights all of
      which the Assignor hereby waive and may be enforced for any balance due
      after resorting to any one or more other means of obtaining payments or
      discharge of the monies, obligations and liabilities hereby secured.

3.4   NO DISCHARGE

      The liabilities and obligations of the Assignor under this Deed and the
      security constituted by this Deed shall remain in force notwithstanding
      any act, omission, event or circumstance whatsoever until full, proper and
      valid payment and discharge of the Secured Obligations and without
      limiting the foregoing, neither the liabilities of the Assignor under this
      Deed nor the validity or enforceability of this Deed shall be prejudiced,
      affected or discharged by:-

      (a)   the granting of any time or indulgence to the Assignor or any other
            person in respect of the Secured Obligations;

      (b)   any variation or modification of the Facility Agreement, any of the
            other Finance Documents or any other documents referred to therein
            or related thereto;

      (c)   the invalidity or unenforceability of any obligation or liability of
            any party under the Facility Agreement, any of the other Finance
            Documents or any other documents referred to therein or related
            thereto;

      (d)   any invalidity or irregularity in the execution of the Facility
            Agreement, any of the other Finance Documents or any other documents
            referred to therein or relating thereto;

      (e)   any lack of capacity or deficiency in the powers of the Assignor or
            any other person to enter into or perform any of its respective
            obligations under the Facility Agreement or any of the other Finance
            Documents to which it is party or any other documents referred to
            therein or related thereto or any irregularity in the exercise
            thereof or any lack of authority by any person purporting to act on
            behalf of the Assignor or such other person;

      (f)   the insolvency, bankruptcy or liquidation or any incapacity,
            disability or limitation or any change in the constitution or status
            of the Assignor or any other person;

      (g)   any other Finance Document, Security Interest, guarantee or other
            security or right or remedy being or becoming held by or available
            to the Security Trustee, any Finance Party or by any other person or
            by any of the same being or becoming wholly or partly void, voidable
            or unenforceable or impaired or by the Security Trustee or any
            Finance Party at any time releasing, refraining from enforcing,
            varying or in any other way dealing with any of the same or any
            power, right or remedy the Security Trustee and/or any Finance Party
            may now or hereafter have from or against the Borrower, any Assignor
            or any other

                                     - 5 -
<PAGE>

                                                           [Security Assignment]

            person;

      (h)   any waiver, exercise, omission to exercise, compromise, renewal or
            release of any rights against the Assignor or any other person or
            any compromise, arrangement or settlement with any of the same; or

      (i)   any act, omission, event or circumstance which would or may but for
            this provision operate to prejudice, affect or discharge this Deed
            or the liability of the Assignor hereunder.

3.5   NO SUBROGATION

      (a)   The Assignor shall not exercise any right of subrogation,
            contribution or any other rights of a surety or enforce any security
            or other right or claim against the Assignor or any other person
            (whether in respect of its liability under this Deed or otherwise)
            who has guaranteed or given any security in respect of the Secured
            Obligations or claim in the insolvency or liquidation of the
            Assignor or any such other person in competition with the Security
            Trustee and/or the Finance Parties.

      (b)   If the Assignor receives any payment or benefit in breach of this
            Clause 3.5, it shall hold the same upon trust for the Security
            Trustee as a continuing security for the Secured Obligations.

4.    REPRESENTATIONS AND WARRANTIES

4.1   REPRESENTATIONS AND WARRANTIES

      The Assignor hereby represents and warrants to the Security Trustee for
      the benefit of the Finance Parties that:-

      (a)   STATUS: the Assignor is a company duly incorporated and validly
            existing under the laws of Bermuda and has full power, authority and
            legal right to own its property and assets and to carry on its
            business as such business is now being conducted;

      (b)   POWER AND AUTHORITY: the Assignor has all legal power and authority
            to enter into this Deed and perform its obligations under this Deed
            and all actions (including any corporate action) required to
            authorise the execution and delivery of this Deed and the
            performance of its obligations under this Deed have been duly taken;

      (c)   LEGAL VALIDITY: this Deed constitutes or, when so executed and
            delivered, will constitute legal, valid and binding obligations of
            the Assignor enforceable in accordance with its terms;

      (d)   NON-CONFLICT WITH LAWS: the entry into and performance of this Deed
            and the transactions contemplated by this Deed do not and will not
            conflict with or result in (i) a breach of any law, judgment or
            regulation or any official or judicial order,

                                     - 6 -
<PAGE>

                                                           [Security Assignment]

            or (ii) a breach of the constitutional documents of the Assignor, or
            (iii) a material breach of any agreement or document to which the
            Assignor is a party or which is binding upon it or any of its assets
            or revenues with a monetary value greater than US$500,000, nor cause
            any limitation placed on it or the powers of its directors to be
            exceeded or result in the creation or imposition of any Security
            Interest on any part of the Collateral pursuant to the provisions of
            any such agreement or document;

      (e)   NO CONSENTS: other than the Consents and any registration of this
            Deed by the Security Trustee pursuant to Clause 2.5, no consent,
            authorisation, licence or approval of, or registration with or
            declaration to, any governmental or public bodies or authorities or
            courts in Hong Kong or in any relevant jurisdiction is required for
            or in connection with the execution, delivery, validity,
            enforceability and admissibility in evidence in proceeding of this
            Deed, or the performance by, the Assignor of any of its obligations
            under this Deed;

      (f)   NO REGISTRATION: it is not necessary in order to ensure the
            legality, validity, enforceability or admissibility in evidence of
            this Deed that it or any other instrument be notarised, filed,
            recorded, registered or enrolled in any court or other authority or
            that any stamp, registration or similar tax or charge be paid on or
            in relation to this Deed and this Deed is in proper form for its
            enforcement in the courts of Hong Kong and all jurisdictions the
            subject of any legal opinion referred to in paragraph 4 of Schedule
            3 of the Facility Agreement;

      (g)   LITIGATION: except as disclosed in a letter of even date from the
            Borrower to the Security Trustee, no litigation, arbitration or
            administrative proceeding is currently taking place or pending or,
            to the knowledge of the officers of the Assignor, threatened against
            the Assignor or any of its assets which could, in the reasonable
            opinion of the Security Trustee, materially and adversely affect its
            business, assets or financial condition or its ability to perform
            its obligations under this Deed;

      (h)   WINDING UP: it has not taken any corporate action or no other step
            has been taken or legal proceedings have been commenced or
            threatened against it for its winding-up, dissolution,
            administration or reorganisation or for the appointment of a
            receiver, administrator, trustee or similar officer of it or all or
            any of its assets or revenues, except as permitted by clause 17.1(g)
            (Winding-up) of the Facility Agreement;

      (i)   TAXES ON PAYMENTS: all payments to be made by the Assignor under
            this Deed may be made by the Assignor free and clear of, and without
            deduction for, Taxes and no deductions or withholdings are required
            to be made therefrom save as specified in any legal opinion referred
            to in paragraphs 2, 3 and 4 of Schedule 3 to the Facility Agreement;
            and no Taxes are imposed on or by virtue of the execution or
            delivery by the Assignor of this Deed or any document to be executed
            or delivered under this Deed;

      (j)   TAX LIABILITIES: the Assignor has complied with all Taxation laws in
            all material

                                     - 7 -
<PAGE>

                                                           [Security Assignment]

            respects in all jurisdictions in which it is subject to Taxation and
            has paid all Taxes due and payable by it; no material claims are
            being asserted against it with respect to Taxes;

      (k)   NO DEFAULT:

            (i)   no Default has occurred and is continuing:

            (ii)  it is not, or with the giving of notice or lapse of time or
                  satisfaction of any other condition or any combination
                  thereof, would not be in material breach of or in default
                  under any agreement relating to Financial Indebtedness to
                  which it is a party or by which it may be bound;

      (l)   COMPLIANCE, WITH CONSENTS AND LICENSES: every consent,
            authorisation, licence or approval required for the time being by it
            in connection with the conduct of its business and the ownership,
            use, exploitation or occupation of its property and assets has been
            applied for and not refused or has been obtained and is in full
            force and effect and there has been no material default in the
            observance of the conditions and restrictions (if any) imposed on,
            or in connection with, any of the same which may have a material
            adverse effect on its ability to perform its obligations under this
            Deed and, to the knowledge of its officers, no circumstances have
            arisen whereby any remedial action is likely to be required to be
            taken by it, or at its expense under or pursuant to any law or
            regulation applicable to its business, property or assets;

      (m)   NO FINANCIAL INDEBTEDNESS: it does not have any Financial
            Indebtedness other than as permitted by Clause 16.17 of the Facility
            Agreement;

      (n)   NO IMMUNITY: the Assignor is generally subject to civil and
            commercial law and to legal proceedings and neither the Assignor nor
            any of its assets or revenues is entitled to any immunity or
            privilege (sovereign or otherwise) from any set-off, judgment,
            execution, attachment or other legal process;

      (o)   SOLE AND BENEFICIAL OWNER: the Assignor is or will be the sole,
            absolute and beneficial owner of the Collateral;

      (p)   LEGAL AND BINDING OBLIGATIONS: the obligations of the parties to the
            Assigned Agreement are legal, valid and binding and enforceable in
            accordance with its terms;

      (q)   SECURITY INTEREST: no Security Interest exists in any of its rights,
            title, interests or benefits in the Collateral (other than as
            created by this Deed); and

      (r)   THIRD PARTY RIGHT: it has not granted in favour of any other person
            any interest in or any option or other rights in respect of any of
            the Collateral.

4.2   CONTINUING REPRESENTATION AND WARRANTY

      The Assignor also represents and warrants to and undertakes with the
      Security Trustee

                                     - 8 -
<PAGE>

                                                           [Security Assignment]

      that the foregoing representations and warranties in Clause 4.1 (a) to (n)
      inclusive are deemed to be made by the Assignors on each Drawdown Date and
      on each Interest Payment Date with reference to the facts and
      circumstances then existing and that the foregoing representations in
      Clause 4.1(o) and (p) will be true and accurate throughout the continuance
      of this Deed with reference to the facts and circumstances from time to
      time.

5.    TAXES AND OTHER DEDUCTIONS

5.1   TAX GROSS-UP

      (a)   All sums payable by the Assignor under this Deed shall be paid in
            full without any restriction or condition and free and clear of any
            Tax or other deductions or withholdings of any nature.

      (b)   If at any time the Assignor or any other person is required in any
            jurisdiction to make any deduction or withholding in respect of
            Taxes or otherwise from any payment due under this Deed for the
            account of the Security Trustee or any Finance Party (or if the
            Security Trustee is required to make any such deduction or
            withholding from a payment to other Finance Parties), the sum due
            from the Assignor in respect of such payment shall be increased to
            the extent necessary to ensure that, after the making of such
            deduction or withholding, the Security Trustee and each Finance
            Party receives on the due date for such payment (and retains, free
            from any liability in respect of such deduction or withholding) a
            net sum equal to the sum which it would have received had no such
            deduction or withholding been required to be made.

      (c)   The Assignor's obligations under Clause 5.1(a) and (b) shall not
            apply in respect of any Tax on Overall Net Income levied on the
            Security Trustee or any other Finance Party.

      (d)   All Taxes required by law to be deducted or withheld by the Assignor
            from any amounts paid or payable under this Deed shall be paid by
            the Assignor when due (except for such amounts being disputed by the
            Assignor in good faith) to the relevant tax authority.

5.2   TAX INDEMNITY

      The Assignor shall indemnify the Security Trustee and each other Finance
      Party against any losses or costs incurred by any of them by reason of:

      (a)   any failure of the Assignor or any other person to make any such
            deduction or withholding referred to in Clause 5.1; or

      (b)   any increased payment referred to in Clause 5.1 not being made on
            the due date for such payment; or

      (c)   any Taxes which are being disputed by the Assignor and remaining
            unpaid;

                                     - 9 -
<PAGE>

                                                           [Security Assignment]

            and

      (d)   any liability suffered (directly or indirectly) for or on account of
            Tax by that Finance Party in respect of any payment received or
            receivable or deemed to be received or receivable under this Deed.

5.3   EVIDENCE OF PROOF

      The Assignor shall promptly deliver to the Security Trustee any receipts,
      certificates or other proof evidencing the amounts (if any) paid or
      payable in respect of any deduction or withholding as aforesaid. Any
      certificate or determination of the Security Trustee showing in reasonable
      details the calculations made by the Security Trustee as to any amount for
      the purposes of this Clause 5 shall, in the absence of manifest error, be
      conclusive and binding on the Assignor.

5.4   TAX CREDIT

      If the Assignor makes a Tax payment and the Security Trustee determines
      that:-

      (a)   a Tax Credit is attributable either to an increased payment of which
            that Tax payment forms part, or to that Tax payment; and

      (b)   it has obtained, utilised and retained that Tax Credit,

      the Security Trustee shall, promptly after obtaining the benefit of that
      Tax Credit, pay an amount to the Assignor which will leave it (after that
      payment) in the same after-Tax position as it would have been in had the
      Tax Payment not been required to be made by the Assignor.

6.    COSTS, CHARGES AND EXPENSES

6.1   The Assignor shall from time to time forthwith on demand pay to or
      reimburse the Finance Parties and the Receiver (on the basis of a full
      indemnity) the amount of:

      (a)   all costs, charges and expenses properly incurred by the Finance
            Parties or the Receiver in connection with the investigation of
            title to or any survey, inspection or valuation of the Collateral
            under or in connection with this Deed following an Event of Default,
            and the negotiation, preparation, registration, perfecting,
            amendment, modification or administration of this Deed (or any of
            the charges therein contained) or any other document relating
            thereto;

      (b)   all costs, charges and expenses properly incurred by the Finance
            Parties or the Receiver in connection with the exercise, or the
            attempted exercise, by or on behalf of the Security Trustee or any
            other Finance Party or the Receiver of any of the powers of the
            Security Trustee or any other Finance Party or the Receiver, or any
            other action taken by or on behalf of the Security Trustee or any
            other Finance Party with a view to or in connection with the
            recovery by

                                     - 10 -
<PAGE>

                                                           [Security Assignment]

            the Security Trustee or any other Finance Party of the Secured
            Obligations from the Assignor or any other person;

      (c)   all costs, charges and expenses properly incurred by the Finance
            Parties or the Receiver in connection with the carrying out of any
            other act or matter which the Security Trustee or any Finance Party
            or the Receiver may reasonably consider to be necessary or required
            for the preservation of the Collateral; and

      (d)   all costs, charges and expenses (including legal and other fees on a
            full indemnity basis) properly incurred by the Security Trustee or
            any other Finance Party or Receiver in exercising any of its rights
            or powers hereunder or in suing for or seeking to recover any sums
            due hereunder or otherwise preserving or enforcing its rights
            hereunder or in defending any claims brought against it in respect
            of this Deed or in releasing or re-assigning this Deed upon payment
            of all moneys hereby secured,

      and until payment of the same in full, all such costs, charges and
      expenses shall be guaranteed by this Deed.

6.2   STAMP DUTY

      The Assignor shall pay all stamp, documentary, registration or other like
      duties or taxes (including any duties or taxes payable by the Security
      Trustee or any Finance Party) imposed on or in connection with this Deed
      and shall indemnify each of the Security Trustee and the other Finance
      Parties against any liability arising by reason of any delay or omission
      by the Assignor to pay such duties or taxes.

7.    UNDERTAKINGS

      The Assignor hereby undertakes and agrees with the Security Trustee for
      the benefit of the Finance Parties throughout the continuance of this Deed
      and so long as the Secured Obligations or any part thereof remains owing
      that, unless the Security Trustee otherwise agrees in writing, it will:-

      (a)   perform all its obligations under the Assigned Agreement;

      (b)   notify the Security Trustee of any breach by any party to the
            Assigned Agreement;

      (c)   give to the Security Trustee upon receipt copies of all notices,
            requests and other documents sent or received with respect to the
            Assigned Agreement;

      (d)   give to the Security Trustee such information regarding the
            Collateral as the Security Trustee shall reasonably require;

      (e)   do or permit to be done every act or thing which the Security
            Trustee may require to be done for the purpose of enforcing the
            rights of the Security Trustee hereunder and will allow its name to
            be used as and when required for that

                                     - 11 -
<PAGE>

                                                           [Security Assignment]

            purpose;

      (f)   not amend or agree to amend the Assigned Agreement or waive any of
            its rights thereunder without the prior written consent of the
            Security Trustee (such consent not to be unreasonably withheld);

      (g)   not create or attempt or agree to create or permit to exist any
            Security Interest over all or any part of the Collateral or any
            interest therein or otherwise assign, deal with or dispose of all or
            any part of the Collateral (except under or pursuant to this Deed);

      (h)   not sell or agree to sell, transfer or assign, any part of the
            Collateral;

      (i)   not grant in favour of any other person any interest in or any
            option or other rights in respect of any of the Collateral; and

      (j)   not do or cause or permit to be done anything which may in any way
            depreciate, jeopardise or otherwise prejudice the value of the
            Security Trustee's security hereunder.

8.    ENFORCEMENT

8.1   EVENTS OF DEFAULT

      The security created by this Deed shall become enforceable immediately
      upon the occurrence of an Event of Default which is continuing. For the
      purposes of this Clause, each of the following events and circumstances
      shall be an Event of Default:-

      (a)   any Event of Default as that term is defined in the Facility
            Agreement;

      (b)   if the Assignor purports or attempts to create any Security Interest
            (except under or as permitted by this Deed) over all or any part of
            the Collateral or any third party asserts a claim in respect
            thereof.

8.2   ENFORCEMENT OF SECURITY

      Upon this Assignment becoming enforceable, the Security Trustee may, at
      any time or times thereafter and without further notice or restriction,
      except as required in accordance with any applicable laws, be entitled to
      exercise and enforce any or all rights of the Assignor in respect of the
      Collateral in or towards the payment or discharge of the Secured
      Obligations in accordance with Clause 9, for this purpose, the Security
      Trustee may, at the expense of the Assignor, convert all or any part of
      such monies into other currencies. The above provisions apply
      notwithstanding any other terms upon which such monies may have been
      deposited or that any such monies may have been deposited for a fixed
      period or be subject to a period of notice and that the fixed period or
      period of notice may not have expired or that notice or sufficient notice
      may not have been given.

                                     - 12 -
<PAGE>

                                                           [Security Assignment]

8.3   AMENDMENT

      Any amendment or waiver of any provision of this Deed and any waiver of
      any default under this Deed shall only be effective if made in writing and
      signed by the Security Trustee.

8.4   EVIDENCE OF DEBT

      Any statement of account signed as correct by the Security Trustee showing
      any amount due under the Facility Agreement or under any other Finance
      Document or under this Deed shall, in the absence of manifest error, be
      conclusive evidence of the amount so due.

9.    APPLICATION OF PROCEEDS

      All monies received by the Security Trustee or the Receiver hereunder
      shall be applied in or towards satisfaction of the Secured Obligations
      (subject to the prior discharge of all liabilities having priority thereto
      by law) in the following order of priority:-

      (a)   in payment or satisfaction of all costs, charges, expenses and
            liabilities properly incurred and payments made by or on behalf of
            the Security Trustee or the Receiver in connection with the exercise
            of any powers hereunder and in preserving or attempting to preserve
            this security or the Collateral and of all outgoings in respect of
            the Collateral paid by the Security Trustee or the Receiver pursuant
            to this Deed;

      (b)   in payment to the Receiver of all remuneration as may be agreed
            between it and the Security Trustee to be paid to him at, or at any
            time after, its appointment;

      (c)   in or towards reduction of the remaining Secured Obligations in such
            manner as is provided in the Facility Agreement; and

      (d)   the surplus (if any) to the Assignor.

10.   INDEMNITY

10.1  GENERAL INDEMNITY

      The Assignor hereby undertakes with the Security Trustee to indemnify and
      keep indemnified the Finance Parties and each of them (each an
      "INDEMNITEE") from and against all costs, charges and expenses which the
      Security Trustee or such Finance Party shall properly incur in connection
      with the exercise of any powers conferred by this Deed or the perfection,
      preservation or enforcement of the security created by this Deed (unless
      and to the extent that any of the foregoing results directly from the
      fraud, gross negligence or wilful misconduct of that indemnitee).

10.2  CURRENCY INDEMNITY

                                     - 13 -
<PAGE>

                                                           [Security Assignment]

      (a)   If an amount due to the Security Trustee or any Finance Party from
            the Assignor under this Deed (a "SUM"), or any order, judgment or
            award given or made in relation to a sum, has to be converted from
            the currency (the "FIRST CURRENCY") in which that Sum is payable
            into another currency (the "SECOND CURRENCY") for the purpose of:

            (i)   making or filing a claim or proof against the Assignor;

            (ii)  obtaining or enforcing an order, judgment or award in relation
                  to any litigation or arbitration proceedings,

            the Assignor shall, as an independent obligation to the Security
            Trustee or such Finance Party, indemnify the Security Trustee or
            such Finance Party to whom that sum is due against any cost, loss or
            liability arising out of or as a result of the conversion including
            any discrepancy between (A) the rate of exchange used to convert
            that sum from the first currency into the second currency and (B)
            the rate or rates of exchange available to that person at the time
            of its receipt of that sum.

      (b)   The Assignor waives any right it may have in any jurisdiction to pay
            any amount under the Facility Agreement and/or any other Finance
            Document in a currency or currency unit other than that in which it
            is expressed to be payable.

10.3  PAYMENT AND SECURITY

      The Security Trustee or any other Finance Parties may retain and pay out
      of any money in the hands of the Security Trustee or such Finance Party
      all sums necessary to effect the indemnity contained in this Clause and
      all sums payable by any Assignor under this Clause shall form part of the
      monies hereby secured.

11.   SUSPENSE ACCOUNT

      The Security Trustee may, notwithstanding Clause 9 (Application of
      Proceeds), place and keep any monies received under this Deed, before or
      after the insolvency of the Assignor, to the credit of a suspense account
      in order to preserve the rights of the Security Trustee or the Finance
      Parties to sue or prove for the whole amount in respect of claims against
      the Assignor or any other person.

12.   SET OFF

      (a)   Without prejudice to any right of set-off, combination of accounts,
            lien or other rights which the Security Trustee or any Receiver is
            at any time entitled whether by operation of law or contract or
            otherwise, the Security Trustee and the Receiver may (but shall not
            be obliged to) set off against any obligation of the Assignor due
            and payable by it hereunder without prior notice any moneys held

                                     - 14 -
<PAGE>

                                                           [Security Assignment]

            by the Security Trustee or such Receiver for the account of the
            Assignor at any office of the Security Trustee or such Receiver
            anywhere and in any currency. The Security Trustee or such Receiver
            may effect such currency exchanges as are appropriate to implement
            such set off.

      (b)   If the obligations are in different currencies, the Security Trustee
            or any Receiver may convert either obligation at a market rate of
            exchange in its usual course of business for the purpose of the
            set-off.

13.   POWER OF ATTORNEY

13.1  POWER OF ATTORNEY

      The Assignor irrevocably appoints the Security Trustee, the Receiver and
      any persons deriving title under it by way of security jointly and
      severally to be its attorney (with full power of substitution) and in its
      name or otherwise on its behalf and as its act and deed to sign, seal,
      execute, deliver, perfect and do all deeds, instruments, acts and things
      which may be required or which the Security Trustee or the Receiver shall
      think proper or reasonably expedient for carrying out any obligations
      imposed on the Assignor hereunder or for exercising, following the
      security constituted by this Deed becoming enforceable, any of the powers
      conferred by this Deed or for giving to the Security Trustee the full
      benefit of this security and so that this appointment shall operate to
      authorise the Security Trustee and the Receiver to do on behalf of the
      Assignor anything it can lawfully do by an attorney. The Assignor ratifies
      and confirms and agrees to ratify and confirm any deed, instrument, act or
      thing which such attorney or substitute may execute or do in exercising
      its powers conferred by this Clause.

13.2  DELEGATION

      The Security Trustee and/or the Receiver may delegate to any person all or
      any of the rights or powers conferred on it by this Deed or by law Any
      such delegation may be made upon such terms and conditions (including
      power to sub-delegate) as the Security Trustee or the Receiver thinks fit.

14.   FURTHER ASSURANCE

      The Assignor agrees that at any time and from time to time upon the
      written request of the Security Trustee it will promptly and duly execute
      and deliver any and all such further instruments and documents as the
      Security Trustee may reasonably require for the purpose of obtaining the
      full benefit of this Deed and of the rights and powers herein granted.

15.   NOTICES

15.1  NOTICES

                                     - 15 -
<PAGE>

                                                           [Security Assignment]

      Any notice or communication under or in connection with this Deed shall be
      in writing and shall be delivered personally or by prepaid letter (airmail
      if available) or facsimile transmission to the addresses or facsimile
      numbers set out below or at such other address as the recipient may have
      notified to the other parties in writing. Proof of posting or despatch of
      any notice or communication to any party hereto shall be deemed to be
      proof of receipt:-

      (a)   in the case of a letter, on the fifth Business Day after posting if
            airmail or second Business Day if local mail;

      (b)   in the case of a facsimile transmission, on the Business Day
            immediately following the date of despatch with confirmed facsimile
            report.

      All communications or other correspondence between the Assignor and any of
      the Finance Parties in connection with this Deed shall be made through the
      Security Trustee.

15.2  ADDRESSES

      Notices or communications shall be sent to the following addresses:-

      To the Assignor:-

      Name                  Asia Netcom Corporation Limited
      Address               46/F Cheung Kong Center
                            2 Queen's Road Central
                            Hong Kong

      Fax                   (852) 2121 2929
      Attention             Gregory Freiberg/Wenlong Sun

      With a copy to:       Asia Netcom Singapore Pte Limited
                            2 Shenton Way #11-01
                            SGX Centre 1
                            Singapore 068804

      Fax                   (65) 6233 6390
      Attention             Oliver Ao

      To the Security Trustee:-

      Name                  Industrial and Commercial Bank of China
                            (Asia) Limited
      Address               10/F, ICBC Asia Building
                            122-126 Queen's Road Central
                            Hong Kong

      Fax                   (852) 2851 9361
      Attention             Ms. Esther Cheng/ Ms. Amy Wong

                                     - 16 -
<PAGE>

                                                           [Security Assignment]

15.3  LANGUAGE

      Each notice or document referred to in this Deed or to be delivered under
      this Deed shall be in the English language.

16.   WAIVERS, AMENDMENTS AND CONSENTS, REMEDIES, SEVERABILITY, ASSIGNMENT AND
      COUNTERPARTS

16.1  WAIVERS

      No failure or delay on the part of the Security Trustee or Finance Party
      to exercise any power, right or remedy under this Deed shall operate as a
      waiver thereof, nor shall any single or partial exercise by the Security
      Trustee or any Finance Party of any power, right or remedy preclude any
      other or further exercise thereof or the exercise of any other power,
      right or remedy.

16.2  AMENDMENTS AND CONSENTS

      (a)   Any amendment of any provision of this Deed shall only be effective
            if made in accordance with provisions with this Deed and if all
            parties hereto so agree in writing and any waiver of any breach or
            default under this Deed shall only be effective if the Security
            Trustee acting on the instructions of the Lenders or the Majority
            Lenders (as the case may be), agrees in writing. Any consent by the
            Security Trustee under this Deed must be made in writing.

      (b)   Any such waiver or consent may be given subject to any conditions
            thought fit by the Security Trustee acting on the instructions of
            the Lenders or the Majority Lenders, as the case may be, and shall
            be effective only in the instance and for the purpose for which it
            is given.

16.3  REMEDIES

      The remedies provided in this Deed are cumulative and are not exclusive of
      any remedies provided by law.

16.4  SEVERABILITY

      If any provision of this Deed is prohibited or unenforceable in any
      jurisdiction such prohibition or unenforceability shall not invalidate the
      remaining provisions hereof or affect the validity or enforceability of
      such provision in any other jurisdiction.

16.5  ASSIGNMENT

      The Security Trustee may assign its rights under this Deed in accordance
      with the provisions of the Facility Agreement. The Assignor shall not
      assign any of its rights hereunder without the prior written consent of
      the Security Trustee.

                                     - 17 -
<PAGE>

                                                           [Security Assignment]

16.6  COUNTERPARTS

      This Deed may be executed in any number of counterparts including by
      facsimile and all of which taken together shall constitute one and the
      same instrument, and any party hereto may execute this Deed by signing any
      such counterpart.

16.7  It is intended that this document takes effect as a deed notwithstanding
      the fact that a party may only execute this document under hand.

17.   GOVERNING LAW AND JURISDICTION

17.1  GOVERNING LAW

      This Deed is governed by the laws of Hong Kong.

17.2  SUBMISSION TO JURISDICTION

      For the benefit of the Security Trustee and each Finance Party, the
      Assignor irrevocably agrees that the courts of Hong Kong are to have
      jurisdiction to settle any disputes which may arise out of or in
      connection with this Deed and that, accordingly, any legal action or
      proceedings arising out of or in connection with this Deed ("PROCEEDINGS")
      may be brought in those courts and the Assignor irrevocably submits to the
      jurisdiction of those courts.

17.3  OTHER JURISDICTIONS

      Nothing in this Clause 17 (Governing Law and Jurisdiction) shall limit the
      right of the Security Trustee or any Finance Party to take Proceedings
      against the Assignor in any other court of competent jurisdiction nor
      shall the taking of Proceedings in one or more jurisdictions preclude the
      Security Trustee or any Finance Party from taking Proceedings in any other
      jurisdiction, whether concurrently or not.

17.4  WAIVER OF INCONVENIENT FORUM

      The Assignor irrevocably waives any objection which it may at any time
      have to the laying of the venue of any Proceedings in any court referred
      to in this Clause 17 (Governing Law and Jurisdiction) and any claim that
      any such Proceedings have been brought in an inconvenient forum.

17.5  PROCESS AGENT

      The Assignor hereby irrevocably appoints Asia Netcom Asia Pacific
      Commercial Limited of 46th Floor, Cheung Kong Centre, 2 Queen's Road
      Central, Hong Kong to receive, for it and on its behalf, service of
      process in any Proceedings in Hong Kong. Such service shall be deemed
      completed on delivery to the process agent whether or not it is forwarded
      to and received by the Assignor). If for any reason the process agent
      ceases to be able to act as such or no longer has an address in Hong Kong,
      the Assignor irrevocably agrees to appoint a substitute process agent
      acceptable to the

                                     - 18 -
<PAGE>

                                                           [Security Assignment]

      Security Trustee, and to deliver to the Security Trustee a copy of the new
      process agent's acceptance of that appointment, within 30 days.

17.6  SERVICE

      The Assignor irrevocably consents to any process in any Proceeding
      anywhere being served by mailing a copy by post in accordance with Clause
      15 (Notices). Nothing shall affect the right to serve any process in any
      other manner permitted by law.

17.7  WAIVER OF IMMUNITIES

      To the extent that the Assignor has or hereafter may acquire any immunity
      (sovereign or otherwise) from any legal action, suit or proceeding, from
      jurisdiction of any court or from set-off or any legal process (whether
      service or notice, attachment prior to judgment, attachment in aid of
      execution of judgment, execution of judgment or otherwise) with respect to
      itself or any of its property, the Assignor hereby irrevocably waives and
      agrees not to plead or claim such immunity in respect of its obligations
      under this Deed.

IN WITNESS whereof this Deed has been executed by the parties hereto and is
intended to be and is hereby delivered by the Assignor as its deed on the day
and year first above written.

                                     - 19 -
<PAGE>

                                                           [Security Assignment]

                                    SCHEDULE

                                     PART I

                          FORM OF NOTICE OF ASSIGNMENT

To:       China Netcom Corporation (Hong Kong) Limited

Copy  to: Industrial and Commercial Bank of China (Asia) Limited

                                                                      Date: 2004

Dear Sirs,

We refer to the Deed of Right of First Refusal dated [_____________________] and
made between us (the "DEED").

We hereby give you notice that by a deed of security assignment dated as of the
date of this Notice (a copy of which is attached), we have assigned to the
Industrial and Commercial Bank of China (Asia) Limited (the "SECURITY TRUSTEE")
all our rights, title, interest and benefits in and to the Deed and all benefits
and proceeds thereof.

Following an event of default as notified by the Security Trustee, we hereby
irrevocably instruct you that all payments which you may be required to make
under the Deed shall be made directly to the Security Trustee or its order.

However, in all other respects you shall continue to deal with us in respect of
the Deed until you receive written notice to the contrary from the Security
Trustee.

These instructions shall not be altered or revoked by us without the prior
written consent of the Security Trustee.

This letter is governed by the laws of Hong Kong.

Please acknowledge this Notice by signing and returning the enclosed
acknowledgement to the Security Trustee with a copy to ourselves.

Yours faithfully,

--------------------------------------
ASIA NETCOM CORPORATION LIMITED
(Authorised Signatory)

                                     - 20 -
<PAGE>

                                                           [Security Assignment]

                                    SCHEDULE

                                     PART II

                      FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

To:      Industrial and Commercial Bank of China (Asia) Limited

Copy to: Asia Netcom Corporation Limited

We acknowledge receipt from Asia Netcom Corporation Limited (the "ASSIGNOR") of
a notice dated [__________________] (the "NOTICE") of a security assignment upon
the terms of the Deed of Security Assignment dated [_________________] of all
the Assignor's rights, title, interest and benefit in and to the Deed. We
confirm that we:-

(a)   have received no other notice in respect of the Deed;

(b)   are not aware of any default by any party in the performance of its
      obligations under the Deed; and

(c)   will comply with the terms of the said Notice.

This letter shall be governed by the laws of Hong Kong.

Dated _________________________

-----------------------------
for and on behalf of
CHINA NETCOM CORPORATION (HONG KONG) LIMITED

                                     - 21 -
<PAGE>

                                                           [Security Assignment]

                                 SIGNATURE PAGE

ASSIGNOR

SIGNED, SEALED AND DELIVERED                )
as a Deed by its duly authorised attorney   )
                                            ) /s/ Tung Hsiao-Chi
for and on behalf of                        )
ASIA NETCOM CORPORATION LIMITED             )
in the presence of:-                        )

/s/ Corina Delicia Hoon
    Corina Delicia Hoon
    Solicitor
    RICHARDS BUTLER
    20/F Alexandra House
    Hong Kong SAR

SECURITY TRUSTEE

SIGNED by                                   )
Wang Yan, Wilson Wan                        ) /s/ Wang Yan       /s/ Wilson Wan
for and on behalf of                        )
INDUSTRIAL AND COMMERCIAL BANK              )
OF CHINA (ASIA) LIMITED                     )

                                     - 22 -

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