Document:

<PAGE>

                                                                   Exhibit 10.23

                   AMENDMENT NO. 3 TO SHAREHOLDERS' AGREEMENT

     AMENDMENT NO. 3 TO SHAREHOLDERS' AGREEMENT, dated as of February 7, 2000
(this "Amendment") to that certain Shareholders' Agreement dated as of April 23,
       ---------
1999, as amended by Amendment No. 1 dated February 2, 2000 and Amendment No. 2
dated February 4, 2000 (the Shareholders' Agreement") between BROADVIEW NETWORKS
                            -----------------------
HOLDINGS, INC. (f/k/a Coaxicom, Inc.), a Delaware corporation (the "Company"),
                                                                    -------
and each of the shareholders listed on the signature pages thereto
(collectively, the "Shareholders") is made by and between the Company and the
                    ------------
Shareholders.

     WHEREAS, in connection with the proposed initial public offering of the
Company's common stock (the "IPO"), the underwriters of the IPO have advised the
                             ---
Company that the special veto rights of All Preferred Holders and the board
representation rights of the Shareholders could adversely affect the marketing
of the IPO and, accordingly, have requested that such rights be terminated;

     WHEREAS, the managing underwriter of the IPO has advised the Company in
writing that in its opinion it is necessary for the Stockholders to waive the
preemptive rights granted under the Shareholders' Agreement in order for the IPO
to achieve its maximum benefit;

     WHEREAS, the Company and the Shareholders desire to amend the Shareholders'
Agreement in order to (a) eliminate All Preferred Holders' special veto rights
and modify the Shareholders' board representation rights, in each case effective
upon the consummation of a Qualifying IPO and (b) waive All Preferred Holders'
rights to first offer to provide equity financing and the Shareholders'
preemptive rights with respect to the issuance of common stock pursuant to the
IPO, in each case effective as of the date of this Amendment;

     NOW, THEREFORE, in consideration of the premises and mutual covenants and
obligations hereinafter set forth, the Company and the Shareholders hereby agree
as follows:

     SECTION 1.  Definitions.  Capitalized terms used but not otherwise defined
                 -----------
herein shall have the meaning given to them in the Shareholders' Agreement or,
if not defined therein, in the Company's Certificate of Incorporation, as
amended.

     SECTION 2. Amendments to Shareholders' Agreement.  The Shareholders'
                -------------------------------------
Agreement shall be amended, effective upon the consummation of a Qualifying IPO,
as follows:

     (a)  Section 1 shall be amended and restated in its entirety as follows:
          ---------

     1.   Voting Rights.  For so long as this Agreement is in effect, the
          -------------
          Stockholders shall each vote all of their securities of the Company,
          including any securities of the Company acquired after the date of
          this Agreement, in favor of the size of the
<PAGE>

          Board of Directors of the Company (the "Board") and the election of
          each of the other Stockholders' designees to the Board, or any
          committee thereof, as provided below:

          (a) The Board shall consist of five (5) members;

          (b)  One designee to the Board who is selected by holders of at least
               a majority in interest of the then outstanding Priority Preferred
               Shares ("Majority Priority Preferred Holders"). The designee
               selected by the Majority Priority Preferred Holders shall have
               the right to serve on all of the Board's committees; and

          (c)  One designee to the Board who is jointly selected by the Series A
               Holders and the Series B Holders.

     (b)  Section 2 shall be deleted in its entirety and replaced with the
          ---------
     following:

          2.  Restrictions.  [Intentionally deleted.]
              ------------

     SECTION 3.  Waiver of Preemptive Rights.  Each Shareholder hereby waives,
                 ---------------------------
effective as of the date of this Amendment, any  preemptive rights to which he
or it may be entitled under the Shareholders' Agreement with respect to the
issuance of common stock by the Company pursuant to a Qualifying IPO.

     SECTION 4.  Waiver of Rights to First Offer to Provide Equity Financing.
                 -----------------------------------------------------------
All Preferred Holders hereby waive, effective as of the date of this Amendment,
any rights of first offer to provide equity financing to which he or it may be
entitled under the Shareholders' Agreement with respect to the issuance of
common stock by the Company pursuant to a Qualifying IPO.

     SECTION 5.  No Implied Amendments.  Except as herein amended, the
                 ---------------------
Shareholders' Agreement shall remain in full force and effect and is ratified in
all respects.  On and after the effectiveness of this Amendment, each reference
in the Shareholders' Agreement to "this Agreement", "hereunder", "hereof",
"herein" or words of like import, and each reference to the Shareholders'
Agreement in any other agreements, documents or instruments executed and
delivered pursuant to the Securities Purchase Agreement, shall mean and be a
reference to the Shareholders' Agreement, as amended by this Amendment.

     SECTION 6.  Effective Date.  This Amendment shall be effective as of the
                 --------------
date hereof; provided, however, that the provisions of Section 2 of this
             --------  -------
Amendment shall be effective upon the consummation of a Qualifying IPO;
provided, further, however, that if a Qualifying IPO is not consummated within
--------  -------
90 days, following the date hereof, this Amendment shall become null and void.

                                       2
<PAGE>

     SECTION 7. Counterparts.  This Amendment may be executed by the parties
                ------------
hereto in several counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

                                       3
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first written above.

                              BROADVIEW NETWORKS HOLDING, INC.

                                  /s/ Vern Kennedy
                              By:______________________________
                                      Name:
                                      Title:

                              BAKER COMMUNICATIONS FUND, L.P.

                              By:   Baker Capital Partners, LLC
                                       Its General Partner

                                  /s/ Edward Scott
                              By:______________________________
                                      Name:
                                      Title:

                                   The State Treasurer of the State of Michigan,
                              as Custodian of the Michigan Public School
                           Employees' Retirement System, State Employees'
                       Retirement System and Michigan State Police
                   Retirement System

                              By:______________________________
                                      Name:
                                      Title:

                              JOEL GROSS

                              ______________________________

<PAGE>

                              COMMUNICATIONS VENTURES II, L.P.

                                  /s/ Roland Van der Meer
                              By:______________________________
                                      Name:
                                      Title:

                              COMMUNICATIONS VENTURES II
                                    AFFILIATES FUND, L.P.

                                  /s/ Roland Van der Meer
                              By:______________________________
                                      Name:
                                      Title:

                              NEW ENTERPRISE ASSOCIATES VII, L.P.

                              By:   NEA Partners VII, L.P.,
                                       General Partner

                                  /s/ Peter Barris
                              By:______________________________
                                      Name:
                                      Title:

                              NEA PRESIDENTS FUND

                                  /s/ Peter Barris
                              By:______________________________
                                      Name:
                                      Title:

                              NEA VENTURES 1998, L.P.

                                  /s/ Peter Barris
                              By:______________________________
                                      Name:
                                      Title:
<PAGE>

                              WPG ENTERPRISE FUND III, L.L.C.

                              By:   WPG VC Fund Adviser, LLC.,
                                       Fund Investment Advisory Member

                                  /s/ Barry Eggers
                              By:______________________________
                                      Name:   Barry Eggers
                                      Title:  Managing Member

                              WEISS, PECK & GREER VENTURE
                                    ASSOCIATES IV, L.L.C.

                              By:   WPG VC Fund Adviser, L.L.C.,
                                       Fund Investment Advisory Member

                                  /s/ Barry Eggers
                              By:________________________________
                                      Name:   Barry Eggers
                                      Title:  Managing Member

                              WPG INFORMATION SCIENCES
                                    ENTREPRENEUR FUND, L.P.

                              By:   WPG VC Fund Adviser, L.L.C.
                                       General Partner

                                  /s/ Barry Eggers
                              By:________________________________
                                      Name:   Barry Eggers
                                      Title:  Managing Member

                              WEISS, PECK & GREER VENTURE
                                    ASSOCIATES IV CAYMAN, L.P.

                              By:   WPG VC Fund Adviser, L.L.C.,
                                    Fund Investment Advisory Partner

                                  /s/ Barry Eggers
                              By:________________________________
                                      Name:   Barry Eggers
<PAGE>

                                      Title:  Managing Member

                              /s/ Vern Kennedy
                              ________________________________
                              Vern M. Kennedy

                              /s/ Terrance Anderson
                              ________________________________
                              Terrence J. Anderson

                              /s/ Philip Smith
                              ________________________________
                              Philip B. Smith

                              /s/ Tracy Korman
                              ________________________________
                              Tracy W. Korman<PAGE>

                                                                EXHIBIT 10.24

          INTERCONNECTION AGREEMENT UNDER SECTIONS 251 AND 252 OF THE
                        TELECOMMUNICATIONS ACT OF 1996

                         Dated as of September 4, 1998

                                by and between

                NEW ENGLAND TELEPHONE & TELEGRAPH COMPANY, dba
                         BELL ATLANTIC - MASSACHUSETTS

                                      and

                      COMMUNITY NETWORKS OF MASSACHUSETTS
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>  <C>
(1)  GENERAL TERMS AND CONDITIONS

(2)  PART I - Telecommunications Services Provided for Resale
          Appendix A

(3)  PART II - Unbundled Network Elements and Combinations
          Exhibit A - Bona Fide Request Process
          Exhibit B - Timetable for Providing Elements

(4)  PART III - Service Description: Ancillary Functions
          Exhibit A -
          Appendix A - Collocation Schedule
          Appendix B - Application for Collocation
          Appendix C - Insurance Certification
          Appendix D - Grounding Requirements
          Appendix E - Construction Work Completion Notice

(5)  PART IV - Pricing Schedule
          Exhibit A - Local and Toll Call Flows and Intercarrier Billing in the
               Competitive Telecommunications Environment
          Attachment A - Unbundled Network Elements
          Attachment B - Call Flow Diagram

(6)  Attachment 1 - Definitions

(7)  Attachment 2 - Operations Plan and Implementation Team

(8)  Attachment 3 - Intentionally Omitted

(9)  Attachment 4 - Intentionally Omitted

(10) Attachment 5 - Intentionally Omitted

(11) Attachment 6 - Billing and Recording
</TABLE>
<PAGE>

                               TABLE OF CONTENTS
                         General Terms and Conditions

<TABLE>
<CAPTION>
                                                                         Page
                                                                         ----
<S>                                                                      <C>
RECITALS.................................................................   1

DEFINITIONS..............................................................   2

GENERAL TERMS AND CONDITIONS.............................................   2
     1.   Scope of the Agreement.........................................   2
     2.   Term of Agreement; Termination.................................   2
     3.   Transitional Support...........................................   4
     4.   Good Faith Performance.........................................   4
     5.   Option to Obtain Local Services, Network Elements or
                 Combinations Under Other Agreements.....................   4
     6.   Responsibility of Each Party...................................   5
     7.   Government Compliance..........................................   5
     8.   Regulatory Matters.............................................   6
     9.   Liability and Indemnity........................................   7
          9.1    Indemnification.........................................   7
          9.2    Limitation of Liability.................................   8
     10.  Payment Terms, Disputed Amounts and Audits.....................   8
          10.1   Local Services..........................................   8
          10.2   Payment Terms - Other than Local Services...............   9
          10.3   Disputed Amounts - Other than Local Services............  10
          10.4   Audits and Inspections..................................  13
          10.5   Alternate Billing to Third Numbers......................  14
          10.6   Reciprocal Compensation.................................  17
     11.  Service Standards..............................................  19
     12.  OSS/Electronic Interfaces......................................  19
     13.  Operations Plan and Implementation Team........................  22
     14.  Force Majeure..................................................  22
     15.  Certain State and Local Taxes..................................  23
     16.  Dispute Resolution.............................................  23
     17.  Notices........................................................  27
     18.  Confidentiality................................................  29
     19.  Number Portability.............................................  30
          19.1   Interim Number Portability..............................  30
          19.2   Number Reassignment.....................................  33
</TABLE>

<PAGE>

<TABLE>
     <S>                                                                   <C>
     20.  Directory Listings and Directory Distributions.................  33
     21.  Subscriber List Information....................................  35
     22.  Miscellaneous..................................................  35
          22.1   Delegation or Assignment................................  35
          22.2   Nonexclusive Remedies...................................  35
          22.3   No Third Party Beneficiaries............................  36
          22.4   Referenced Documents....................................  36
          22.5   Governing Law...........................................  36
          22.6   Publicity and Advertising...............................  36
          22.7   Amendments or Waivers...................................  36
          22.8   Severability............................................  37
          22.9   Entire Agreement........................................  37
          22.10  Survival of Obligations.................................  37
          22.11  Executed in Counterparts................................  37
          22.12  Headings of No Force or Effect..........................  37
          22.13  Joint Work Product......................................  38
          22.14  Nonexclusive Dealings...................................  38
          22.15  No License..............................................  38
          22.16  Dialing Parity..........................................  38
          22.17  Disclaimer of Warranties................................  38
</TABLE>

                                      ii
<PAGE>

                                   AGREEMENT

                                    between

                  New England Telephone and Telegraph Company
                                   d/b/a BA

                                      and

                   AT&T Communications of New England, Inc.

                          Dated as of April 13, 1998
<PAGE>

                           INTERCONNECTION AGREEMENT
                           -------------------------

     This Agreement, which shall become effective upon the date executed in
accordance with Section 2(a), is entered into by and between AT&T Communications
of New England, Inc., a Massachusetts corporation, having an office at 32 Avenue
of the Americas, New York, New York 10013 ("AT&T"), and New England Telephone
and Telegraph Company, d/b/a Bell Atlantic -Massachusetts, a New York
corporation, having an office at 185 Franklin Street, Boston, Massachusetts
02110 ("BA").

                                   RECITALS
                                   --------

     WHEREAS, the Telecommunications Act of 1996 (as amended or modified from
time to time, the "Act") was signed into law on February 8, 1996; and

     WHEREAS, the Act places certain duties and obligations upon, and grants
certain rights to, Telecommunications Carriers; and

     WHEREAS, the Federal Communications Commission (the "FCC") has issued rules
to implement the Act (including In the Matter of the Local Competition
Provisions in the Telecommunications Act of 1996, FCC 96-325 (hereinafter, as
amended, modified, stayed or reconsidered from time to time, the "Order"); and

     WHEREAS, the Parties are entering into this Agreement to set forth the
respective obligations of the Parties and the terms and conditions under which
AT&T will interconnect with the BA network in the BA service territory within
the Commonwealth of Massachusetts (the "MA Region") and BA will provide services
to AT&T as required by the Act and Order and additional services as set forth
herein; and

     WHEREAS, the Parties have arrived at this Agreement through negotiations
and arbitration proceedings undertaken pursuant to the Act.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
of this Agreement and other good and valuable consideration, AT&T and BA hereby
agree as follows:
<PAGE>

                                  DEFINITIONS
                                  -----------

     For purposes of this Agreement, certain terms have been defined in
Attachment 1 and elsewhere in this Agreement to encompass meanings that may
differ from, or be in addition to, the normal connotation of the defined word.
Unless the context clearly indicates otherwise, any term defined or used in the
singular shall include the plural. The words "shall" and "will" are used
interchangeably throughout the Agreement and the use of either connotes a
mandatory requirement. The use of one or the other shall not mean a different
degree of right or obligation for either Party. A defined word intended to
convey its special meaning is capitalized when used.  Other terms that are
capitalized, and not defined in this Agreement, shall have the meaning in the
Act.

                         GENERAL TERMS AND CONDITIONS
                         -----------------------------

1.   Scope of the Agreement.  This Agreement, together with all applicable
     ----------------------
tariffs as referenced herein (as in effect from time to time except with respect
to those provisions in this Agreement in which it is expressly provided
otherwise), set forth the terms, conditions and prices to which BA and AT&T have
agreed in respect of the following: (a) Local Services, (b) certain unbundled
network elements, (hereinafter collectively referred to as "Network Elements")
or combinations of such Network Elements ("Combinations")*, (c) Collocation,
(d) Number Portability, (e) Access to Rights of Way, Ducts, Conduits and Pole
Attachments, (f) Directory Assistance and Operator Services and Directory
Listings, (g) Reciprocal Compensation, (h) E911 and 911 services, (i) Meet-Point
Billing, (j) Dialing Parity, (k) Transient Tandem Service, (1) Interconnection
of AT&T's network to BA's network and (m) Access to Telephone Numbers. This
Agreement includes the General Terms and Conditions, Parts I through IV, and
their Attachments and all accompanying Appendices and Exhibits. Unless otherwise
provided in this Agreement, the rights and obligations of the Parties hereunder
shall apply throughout the MA Region.

2.   Term of Agreement; Termination.
     ------------------------------

     (a)  The initial term of this Agreement shall commence on the date on which
          this Agreement has been executed by both Parties (the "Effective
          Date") and shall expire on April 12, 2001, except as otherwise
          provided in Section 2(d) below.

___________________

*    The Parties acknowledge and agree that the issue of BA's obligation to
combine unbundled Network Elements is presently before the Department in the
Consolidated Arbitrations D.P.U. 96-73, 96-74, 96-80/81, 96-83 and before the
U.S. Supreme Court. Accordingly, it is agreed that, pending a decision of either
the Department or the U.S. Supreme Court requiring BA to provide combinations of
unbundled Network Elements, BA has no obligation to combine unbundled Network
Elements. When the Department, the U.S. Supreme Court or any court of competent
jurisdiction issues a decision or order upon this issue, upon written request of
either Party, the Parties agree to meet and expeditiously negotiate in good
faith to arrive at modifications to this Agreement if necessary, to comply with
such decision. Notwithstanding the foregoing, nothing in this Agreement shall
prevent either Party from appealing or otherwise contesting the Department's or
any court's decisions or orders.

                                       2
<PAGE>

(b)  AT&T (i) shall, at BA's request, or (ii) may, at its option, nine
     months prior to the expiration of the Term, with respect to the entire
     Agreement, and/or eighteen months prior to the expiration of the Term, in
     the case of the terms and provisions with respect to Local Services set
     forth in Part I hereof (such terms and provisions, other than with respect
     to the wholesale discounts set forth in Part IV hereof, hereinafter the
     "Resale Terms"), make a request to BA to renegotiate all of the terms of
     this Agreement or the Resale Terms pursuant to Section 251(c)(1) of the
     Act. The date(s) of BA's receipt of such request(s) shall be hereinafter
     referred to as the "Renegotiation Request Date". The Parties agree that
     within sixty (60) days of such Renegotiation Request Date each Party will
     provide to the other a written description of its proposed changes to,
     and/or extension of, the terms of this Agreement or the Resale Terms. The
     Parties shall enter into negotiations on such proposed changes seventy-five
     (75) days after such Renegotiation Request Date.

(c)  In the event that, notwithstanding, the good faith efforts of both
     Parties, they are unable to agree on terms and conditions of a new
     agreement and/or new Resale Terms, then either Party may, beginning 135
     days after the Renegotiation Request Date, file a petition for arbitration
     by the Department pursuant to Section 252(b) of the Act.

(d)  The terms and conditions of this Agreement shall only continue in full
     force and effect until the Effective Date of the Department's decision
     pursuant to any petition filed under Section 2(c) above (the "Arbitration
     Decision") if AT&T requests to renegotiate pursuant to Section 2(b) above;
     provided, however, that the prices, and, where feasible, any other terms
     --------  -------
     and conditions of this Agreement shall be trued up to conform with the
     Arbitration Decision back to the date of expiration of the Term or, with
     respect to modification of Resale Terms, back to the applicable
     Renegotiation Request Date.

(e)  Nothing in this Section 2 shall be construed as a waiver by either
     Party of its right to appeal any decision of the Department, including the
     Arbitration Decision.

(f)  Upon termination or expiration of this Agreement in accordance with
     this Section 2:

     (i)   each Party shall comply with its obligations set forth in
           paragraph (c) of Section 18 of the General Terms and Conditions of
           this Agreement;

     (ii)  each Party shall promptly pay all amounts (including any late
           payment charges or cancellation charges, if any) owed under this
           Agreement; and

     (iii) each Party's obligations that by their terms continue in force
           and effect after termination or expiration of this Agreement
           (including, without limitation,

                                       3
<PAGE>

           indemnification obligations) shall survive termination or expiration
           of this Agreement.

3.   Transitional Support.  Upon the termination or expiration of this
     --------------------
Agreement, AT&T may itself provide or retain another vendor to provide Local
Services, Network Elements, Combinations or other access or services comparable
to those furnished under the terms of this Agreement. BA agrees to cooperate
with AT&T and to use commercially reasonable efforts to effect an orderly and
efficient transition to AT&T or AT&T's new vendor, subject to the payment by
AT&T to BA of the reasonable costs incurred in providing such cooperation.

4.   Good Faith Performance.  In the performance of their obligations under this
     ----------------------
Agreement, the Parties shall act in good faith and consistently with the
provisions of the Act and the applicable effective provisions of the Order.
Except to the extent a different standard is expressly set forth in this
Agreement, in which case such other standard shall apply, where notice, approval
or similar action by a Party is permitted or required by any provision of this
Agreement, (including, without limitation, the obligation of the Parties to
further negotiate the resolution of new or open issues under this Agreement)
such notice, approval or similar action shall not be unreasonably delayed or
withheld.

5.   Option to Obtain Local Services, Network Elements or
     Combinations Under Other Agreements.
     -----------------------------------

     (a) If BA enters into an agreement approved by the Department or the FCC
         pursuant to Section 252 of the Act which provides for the provision in
         the Commonwealth of Massachusetts of services covered in this Agreement
         to another requesting Telecommunications Carrier (the "Other
         Agreement"), BA shall make available to AT&T upon request such Other
         Agreement to the extent required by Section 252(i) of the Act.

         If AT&T enters into an agreement with a Telecommunications Carrier
         approved by the Department or the FCC pursuant to Section 252 of the
         Act with respect to services in the Commonwealth of Massachusetts (the
         "Other AT&T Agreement"), then AT&T shall make available to BA upon
         request such Other AT&T Agreement to the extent required by Section
         252(i) of the Act.

     (b) Notwithstanding the terms and provisions of paragraph (a) of this
         Section 5, in the event that as a result of any decision, order or
         determination of any judicial or regulatory authority, it is determined
         that all or any portion of such paragraph (a) above is found invalid or
         unenforceable, or if such decision, order or determination interprets
         Section 252 (i) to require BA to offer Telecommunications Carriers the
         right to select less than the entire Other Agreement, the Parties agree
         to abide by such decision, order or determination and to amend
         paragraph (a) of this Section 5 to the

                                       4
<PAGE>

         extent that it conflicts with such decision, order or determination.

6.   Responsibility of Each Party.  Each Party has and hereby retains the right
     ----------------------------
to exercise full control of and supervision over its own performance of its
obligations under this Agreement, and retains full control over the employment,
direction, compensation and discharge of all employees assisting in the
performance of such obligations. Each Party will be solely responsible for all
matters relating to payment of such employees, including compliance with social
security taxes, withholding taxes and all other regulations governing such
matters. Subject to the limitations on liability set forth in Section 9 of the
General Terms and Conditions of this Agreement and except as otherwise expressly
provided in this Agreement, each Party shall be responsible for (i) its own acts
and performance of all obligations imposed by all applicable federal, state or
local statutes, laws, rules, regulations, codes, orders, decisions, injunctions,
judgments, awards and decrees (collectively, "Applicable Laws") in connection
with its activities, legal status and property, real or personal, and (ii) the
acts of its own affiliates, employees, agents and contractors during the
performance of that Party's obligations hereunder. Neither this Agreement, nor
any actions taken by BA or AT&T in compliance with this Agreement, shall be
deemed to create an agency, joint venture, or other relationship between AT&T
and BA of any kind, other than that of purchaser and seller of services. Neither
this Agreement, nor any actions taken by BA or AT&T in compliance with this
Agreement, shall create a contractual, agency, or any other type of relationship
or third party liability between BA and AT&T`s end users or others.

7.   Government Compliance.
     ---------------------

     7.1  The provisions of this Agreement are subject in their entirety to the
          applicable provisions of the Act and any other orders, restrictions
          and requirements of governmental and regulatory authorities with
          competent jurisdiction over the subject matter thereof and, in the
          event of any direct conflict between the provisions of this Agreement
          and the requirements of such governmental and regulatory authorities,
          the requirements of such authorities shall prevail.

     7.2  BA represents and AT&T acknowledges that BA is entering into this
          Agreement specifically in order to satisfy the obligations of BA as
          set forth in the Act and the Order.

     7.3  In the event that any legislative, regulatory, judicial or other legal
          action materially affects any material terms of this Agreement or the
          rights or obligations of either AT&T or BA hereunder or the ability of
          AT&T or BA to perform any material provision hereof, the Parties shall
          renegotiate in good faith such affected provisions with a view toward
          agreeing to acceptable new terms as may be required or permitted as a
          result of such legislative, regulatory, judicial or other legal
          action.

                                       5
<PAGE>

     7.4  Notwithstanding anything herein to the contrary, in the event that as
          a result of any decision, order or determination of any judicial or
          regulatory authority with jurisdiction over the subject matter hereof,
          it is determined that BA shall not be required to furnish any service
          or item or provide any benefit required to be furnished or provided to
          AT&T hereunder, then AT&T and BA shall promptly commence and conduct
          negotiations in good faith with a view toward agreeing to mutually
          acceptable new terms as may be required or permitted as a result of
          such decision, order or determination; provided, however, that BA
          expressly reserves all rights it may have to discontinue any such
          service or item or benefit provided under this Agreement to the extent
          permitted by any such decision, order or determination and AT&T
          expressly reserves all rights it may have to oppose any such
          discontinuance by BA.

     7.5  The Parties hereby agree that where a clause from the Interconnection
          Agreement between AT&T Communications of New York, Inc. and New York
          Telephone Company (the "NY Agreement") submitted to the New York
          Public Service Commission (the "NY PSC") has been incorporated in this
          Agreement and such clause or provision is subsequently amended in the
          NY Agreement to conform to an effective order of a governmental agency
          or court of competent jurisdiction resulting from an appeal of a NY
          PSC Order in Cases No. 96-C-0723 and No. 96-C-0724, such clause or
          provision shall be simultaneously amended in this Agreement to conform
          with any such amendments to the NY Agreement.

 8.  Regulatory Matters.
     ------------------

     8.1  Each Party shall reasonably cooperate with the other in obtaining and
          maintaining any required regulatory approvals for which the Party is
          responsible in connection with the performance of its obligations
          under this Agreement.

     8.2  The Parties understand and agree that this Agreement will be filed
          with the Department and may thereafter be filed with the FCC. The
          Parties covenant and agree that this Agreement satisfies the
          requirements of an agreement under Section 251 of the Act. Each Party
          covenants and agrees to fully support approval of this Agreement by
          the Department or the FCC under Section 252 of the Act without
          modification, subject to the rights of the Parties to appeal or
          challenge arbitrated provisions or arbitration decisions. The Parties
          also reserve the right to seek regulatory relief and otherwise seek
          redress from each other regarding performance and implementation of
          this Agreement. In the event the Department, FCC or any court rejects
          this Agreement in whole or in part, the Parties agree to meet and
          negotiate in good faith to arrive at a mutually acceptable
          modification of the rejected portion(s). If such new terms are not
          renegotiated within 30 days after such rejection, the dispute shall be
          referred to the Dispute Resolution process set forth in Section 16

                                       6
<PAGE>

          of the General Terms and Conditions of this Agreement.

 9.  Liability and Indemnity.
     -----------------------

      9.1 Indemnification.
          ---------------

          (a)  With respect to all matters under this Agreement other than Local
               Services (which shall be governed by the provisions of Appendix A
               to Part I of this Agreement), to the extent not prohibited by any
               Applicable Law, each Party (the "Indemnifying Party") shall
               indemnify and hold harmless the other Party ("Indemnified Party")
               from and against loss, cost, claim, liability, damage, and
               expense (including reasonable attorney's fees) to third parties
               for:

               (i)   damage to tangible personal property or for personal injury
                     proximately caused by the negligence or willful misconduct
                     of the Indemnifying Party, its employees, agents or
                     contractors; and

               (ii)  claims for libel, slander, infringement of copyright
                     arising from the material transmitted over the Indemnified
                     Party's facilities arising from the Indemnifying Party's
                     own communications or the communications of such
                     Indemnifying Party's Customers; and

               (iii) claims for infringement of patents arising from combining
                     the Indemnified Party's facilities or services with, or the
                     using of the Indemnified Party's services or facilities in
                     connection with, facilities of the Indemnifying Party.

          (b)  The Indemnified Party will notify the Indemnifying Party promptly
               in writing of any claims, lawsuits, or demands by third parties
               for which the Indemnified Party alleges that the Indemnifying
               Party is responsible under this Section, and, if requested by the
               Indemnifying Party, will tender the defense of such claim,
               lawsuit or demand. In the event the Indemnifying Party does not
               promptly assume or diligently pursue the defense of the tendered
               action, then the Indemnified Party may proceed to defend or
               settle said action and the Indemnifying Party shall hold harmless
               the Indemnified Party from any loss, cost, liability, damage and
               expense. In the event the Party otherwise entitled to
               indemnification from the other elects to decline such
               indemnification, then the Party making such an election may, at
               its own expense, assume defense and settlement of the claim,
               lawsuit or demand. The Parties will cooperate in every reasonable
               manner with the defense or settlement of any claim, demand, or
               lawsuit.

                                       7
<PAGE>

      9.2 Limitation of Liability.
          -----------------------

          (a)  Except as otherwise provided in Section 9.1 of the General Terms
               and Conditions of this Agreement, no liability shall attach to
               either Party, its parents, subsidiaries, affiliates, agents,
               servants or employees for any cost, expense, claim, liability,
               damage, expense or other Loss in the absence of gross negligence
               or willful misconduct.

          (b)  Except as otherwise expressly provided in Section 9.1 of the
               General Terms and Conditions of this Agreement, no Party shall be
               liable to the other Party for any cost, expense, claim,
               liability, damage, expense or other Loss caused by the conduct of
               the other Party, the other Party's agents, servants, contractors
               or others acting in aid or concert with the other Party.

          (c)  In no event shall either Party have any liability whatsoever to
               the other Party for any indirect, special, consequential,
               incidental or punitive damages, including, but not limited to
               loss of anticipated profits or revenue or other economic loss in
               connection with or arising from anything said, omitted or done
               hereunder (collectively, "Consequential Damages"), even if the
               other Party has been advised of the possibility of such damages.

          (d)  Except as otherwise provided in Section 9.1 of the General Terms
               and Conditions, each Party's liability to the other Party for any
               Loss relating to or arising out of any negligent act or omission
               in its performance of this Agreement, whether in contract or in
               tort, shall be limited to the amount that is or would have been
               charged to the other Party by such negligent or breaching Party
               for the specific service(s) or function(s) not performed or
               improperly performed, and only for the period of time such
               service or function was not performed or improperly performed.

          (e)  Nothing in this Section 9.2 shall excuse the payment of any award
               of collocation remedies made pursuant to Section 2.2.20.2 of Part
               III hereof or any remedy provided pursuant to Section 11 of the
               General Terms and Conditions of this Agreement.

10.  Payment Terms, Disputed Amounts and Audits.
     ------------------------------------------

     10.  Local Services.
          --------------

          All payments, disputes in regard to payments and (except as provided
          in 10.4 below) audits for Local Services (if any) shall be on the
          terms and conditions set forth in Appendix A to Part I of this
          Agreement. All bills for Local Services provided to one

                                       8
<PAGE>

          Party by the other are due within thirty-one (31) calendar days of the
          bill day (payment date) unless the billed Party is able to establish
          that the bill was not timely received (i.e., at least 20 days prior to
                                                 ----
          the payment date), in which case the payment date shall be twenty (20)
          calendar days from the receipt of the bill. The Parties agree that
          Local Services wholesale bills will be rendered and received
          electronically. The above provisions shall be in addition to the terms
          and conditions of Appendix A to Part I of this Agreement and shall be
          interpreted as not in conflict therewith.

     10.2 Payment Terms - Other than Local Services.
          -----------------------------------------

          This Section 10.2 does not apply to Local Services. Except for
          alternately billed calls and meet-point billed calls, each Party shall
          bill on a current basis all charges incurred by and credits due to the
          other Party under this Agreement attributable to services established,
          discontinued or performed during the preceding billing period. In
          addition, either Party may bill in advance charges for all services to
          be provided during the ensuing billing period except for charges
          associated with measured service usage which will be billed in
          arrears. The bill day (i.e., the billing date of a bill for a Party
                                 ----
          for services under this Agreement), the period of service each bill
          covers, and the payment date will be as follows:

          (a)  Each Party will establish a bill day each month for the other
               Party's account. If payment is not received by the payment date,
               as set forth in (b) following, in immediately available funds, a
               late payment penalty will apply as set forth in (b) following.

          (b)  All bills dated as set forth in (a) preceding for service
               provided to one Party by the other are due within thirty-one (31)
               calendar days (payment date) unless the billed Party is able to
               establish that the bill was not timely received (i.e., at least
                                                                ----
               20 days prior to the payment date), in which case the payment
               date shall be twenty (20) calendar days from the receipt of the
               bill. All bills are payable in immediately available funds. If
               such payment date would cause payment to be due on a Saturday,
               Sunday or Legal Holiday, payment for such bills will be due from
               the billed Party as follows:

               (i)   If such payment date falls on a Sunday or on a Legal
                     Holiday which is observed on a Monday, the payment date
                     shall be the first non-holiday day following such Sunday or
                     Legal Holiday.

               (ii)  If such payment date falls on a Saturday or on a Legal
                     Holiday which is observed on Tuesday, Wednesday, Thursday
                     or Friday, the payment date shall be the last non-holiday
                     day preceding such Saturday or Legal Holiday.

                                       9
<PAGE>

               (iii) Further, if any portion of the payment is received by the
                     billing Party after the payment date, or if any portion of
                     the payment is received by the billing Party in funds which
                     are not immediately available to the billing Party, then a
                     late penalty shall be due to the billing Party. The late
                     payment penalty shall be the portion of the payment not
                     received by the payment date or not immediately available
                     times a late factor. The late factor shall be the lesser
                     of:

                         (x)  The highest interest rate (in decimal value) which
                              may be allowed by law for commercial transactions,
                              for the number of days from the payment date to
                              and including the date that the billed Party,
                              actually makes the payment to the billing Party,
                              or

                         (y)  0.0005 per day, simple interest, for the. number
                              of days from the payment date to and including the
                              date that the billed Party actually makes the
                              payment to the billing Party.

10.3 Disputed Amounts -Other than Local Services.
     -------------------------------------------

     Except with respect to Local Services, in the event that a billing dispute
     occurs concerning any charges billed to the billed Party by the billing
     Party the following provisions will apply.

     (a)  The first day of the dispute shall be the date on which the billed
          Party furnishes in writing the billing Party with the account number
          under which the bill has been rendered, the date of the bill and the
          specific items on the bill being disputed.

     (b)  If the Parties are unable to resolve the issues related to the
          disputed amounts in the normal course of business within ninety (90)
          days after delivery to the billing Party of notice of the disputed
          amounts, each of the Parties shall appoint a designated representative
          who has authority to settle the dispute and who is at a higher level
          of management than the persons with direct responsibility for
          administration of this Agreement. The designated representatives shall
          meet as often as they reasonably deem necessary in order to discuss
          the dispute and negotiate in good faith in an effort to resolve such
          dispute.  The specific format for such discussions will be left to the
          discretion of the designated representatives, however all reasonable
          requests for relevant information made by one Party to the other Party
          shall be honored.

                                       10
<PAGE>

     (c)  If the Parties are unable to resolve issues related to the
          disputed amounts within forty-five (45) days after the Parties'
          appointment of designated representatives pursuant to paragraph (b)
          above, then the matter shall be decided pursuant to Section 16 of the
          General Terms and Conditions of this Agreement.

     (d)  The Parties agree that all negotiations pursuant to this Section
          10.3 with respect to disputed amounts shall remain confidential and
          shall be treated as compromise and settlement negotiations for
          purposes of the Federal Rules of Evidence and state rules of evidence.

     (e)  If a billing dispute is resolved in favor of the billing Party,
          any payments withheld pending resolution of the dispute shall be
          subject to the late payment penalty as set forth in paragraph 10.2
          (b)(iii) above. Further, the billed Party will not receive a disputed
          amount penalty credit and/or a late payment penalty credit.

     (f)  If a billed Party disputes a bill within three months of the
          payment date and pays the total billed amount on or before the payment
          date, and the billing dispute is resolved in favor of the billed
          Party, the billed Party will receive a credit for a disputed amount
          penalty from the billing Party for the period starting with the date
          of payment and ending on the date of resolution. The credit for a
          disputed amount penalty shall be the following:

          The disputed amount penalty shall be calculated by multiplying that
          portion of the disputed amount paid and resolved in the billed Party's
          favor times the lesser of:

          (i)  The highest interest rate (in decimal value) which may be allowed
               by law for commercial transactions, for the number of days from
               the first date to and including the last date of the period
               involved, or

          (ii) 0.0005 per day for the number of days from the first date to
               and including the last date of the period involved.

     (g)  If the billed Party disputes a bill within three months of the
          payment date and pays the total billed amount after the payment date
          and the billing dispute is resolved in favor of the billed Party, the
          billed Party will receive a credit for a disputed amount penalty from
          the billing Party for the period starting with the date of payment and
          ending on the date of resolution. The credit for a disputed amount
          penalty shall be as set forth following. In addition, the late payment
          penalty applied to the disputed amount resolved in the billed Party's

                                       11
<PAGE>

          favor as set forth in paragraph 10.2(b)(iii) preceding will be
          credited.

     (h)  If the billed Party disputes a bill within three months of the
          payment date and does not pay the disputed amount or does not pay the
          billed amount (i.e., the non-disputed and disputed amount), and the
          billing dispute is resolved in favor of the billed Party, the billed
          Party will not receive a credit for a disputed amount penalty from the
          billing Party.  The late payment penalty applied to the disputed
          amount resolved in the billing Party's favor as set forth in paragraph
          10.2(b)(iii) preceding will not be credited.

     (i)  If a billed Party disputes a bill after three months from the
          payment date and pays the total billed amount on or before the dispute
          date or after the dispute date but prior to the date of resolution,
          and the billing dispute is resolved in favor of the billed Party, the
          billed Party will receive a credit for a disputed amount penalty from
          the billing Party for the period starting with the date of dispute (if
          the payment was received before or on the dispute date) or the date of
          payment (if the payment was received after the dispute date) and
          ending on the date of resolution., The credit for a disputed amount
          penalty shall be as set forth following. The billed Party will not
          receive a credit for the late payment penalty applied to the disputed
          amount resolved in the billed Party's favor if the payment was
          received on or before the dispute date. If the payment was received
          after the dispute date but prior to the date of resolution, the billed
          Party will receive a credit for a late payment penalty applied to the
          disputed amount resolved in the billed Party's favor times a late
          payment penalty factor for the period starting with the date of
          dispute and ending on the date of payment. The penalty factor shall be
          as set forth in paragraph 10.2(b)(iii) preceding.

     (j)  If the billed Party disputes a bill after three months from the
          payment date and does not pay the disputed amount or does not pay the
          billed amount (i.e., the non-disputed amount and disputed amount) and
          the billing dispute is resolved in favor of the billed Party, the
          billed Party will not receive a credit for a disputed amount penalty
          from the billing Party. The billed Party will receive a credit for the
          late payment penalty applied to the disputed amount resolved in the
          billed Party's favor times a late payment penalty factor for the
          period starting with the date of dispute and ending on the date of
          resolution. The penalty factor shall be as set forth in paragraph
          10.2(b)(iii) preceding.

     (k)  Adjustments for the quantities of services established or
          discontinued in any billing period will be prorated to the number of
          days or major fraction of days based on a thirty (30) day month. The
          billing Party will, upon request and if available, furnish to the
          billed Party such detailed information as may

                                       12
<PAGE>

                         reasonably be required for verification of any bill.

               (l)       When a rate as set forth in this Agreement is shown to
                         more than two decimal places, the charges will be
                         determined using the rate shown. The resulting amount
                         will then be rounded to the nearest penny (i.e.,
                         rounded to two decimal places).

               (m)       The Parties agree to establish a process by which
                         closure of a specific billing period will occur by
                         joint agreement. The purpose of a closure process is
                         for the Parties to jointly agree to close a billing
                         period to all further analysis and billing
                         transactions. Closure documentation at a minimum should
                         consist of a mutually developed agreement outlining the
                         process, a sign-off document to formalize the closure
                         of a specific period, and documented specific issues
                         which would be exempt from closure. The intent of a
                         closure process is for the Parties to agree that except
                         for exempted issues, all billing and financial
                         adjustments have been processed and rendered for a
                         specific bill period. The Parties agree to a bill
                         closure process which will be established within twelve
                         (12) months of the Effective Date of this Agreement.

          10.4 Audits and Inspections.
               ----------------------

               (a)       Subject to the terms and conditions of this Section
                         10.4, the restrictions set forth in Section 18 of the
                         General Terms and Conditions and the reasonable
                         security requirements of each Party and except as may
                         be otherwise specifically provided in this Agreement,
                         each Party (the "Auditing Party") may audit the other
                         Party's (the "Audited Party") books, records and other
                         documents which relate solely to the Parties' billing
                         to the other Party under this Agreement (other than in
                         connection with Local Services, with respect to which
                         no such audit right shall be available except to the
                         extent BA develops an audit of the bill certification
                         process pursuant to an industry collaborative process,
                         in which event such audit rights shall be governed by
                         such developed process and not by this Agreement) once
                         each year at the conclusion of each calendar year, in
                         order to evaluate the accuracy of such other Party's
                         billing and invoicing. The Parties may employ other
                         persons or firms for this purpose. Such audit shall
                         take place at a time and place agreed to by the Parties
                         no later than thirty (30) days after notice thereof to
                         such other Party.

               (b)       Each Audited Party shall promptly correct any billing
                         error that is revealed in an audit, including
                         reimbursing any overpayment in the form of a credit to
                         the Auditing Party on the invoice for the first full
                         billing cycle after the Parties have agreed upon the
                         accuracy of the audit results. Any disputes

                                       13
<PAGE>

                         concerning audit results shall be resolved pursuant to
                         the procedures described in Section 16 of the General
                         Terms and Conditions of this Agreement.

               (c)       Each Audited Party shall cooperate fully in any such
                         audit, providing reasonable access to any and all
                         appropriate employees and relevant books, records and
                         other documents reasonably necessary to assess the
                         accuracy of its bills.

               (d)       Each Auditing Party may perform a single additional
                         audit of the Audited Party's relevant books, records
                         and documents during any calendar year if the previous
                         audit uncovered uncorrected net variances or errors in
                         invoices in favor of the Audited Party having an
                         aggregate value (except for Local Services purchases)
                         of not less than two percent (2%) of the total amount
                         payable by the Auditing Party during the period covered
                         by the audit.

               (e)       All audits shall be conducted at the sole cost and
                         expense of the Auditing Party.

               (f)       Upon (i) the discovery by either Party of overcharges
                         not previously reimbursed to the other Party or
                         underpayments by a Party or (ii) the resolution of
                         disputed audits, each Party shall promptly reimburse or
                         pay to the Party entitled thereto the amount of any
                         overpayment or underpayment, together with interest
                         thereon at a rate per month equal to the lesser of 1.5%
                         or the maximum permitted legal rate of interest for the
                         number of days from the date such Party received such
                         overpayment or, in the case of an underpayment, should
                         have received such payment through but excluding the
                         date such reimbursement or payment is made. In no
                         event, however, shall interest be assessed on any
                         previously assessed or accrued late payment charges.

     10.5      Alternate Billing to Third Numbers.
               ----------------------------------

               10.5.1    Calls on BA resold Lines using BA's Operator Services.
                         -----------------------------------------------------
                         The following procedures shall apply for Alternately
                         Billed Calls which are local calls or IntraLATA toll
                         calls carried by BA and originating or terminating over
                         a BA line (x) which has been resold by AT&T pursuant to
                         the terms of Part I of this Agreement and (y) for which
                         BA is providing operator and directory assistance
                         services:

                                       14
<PAGE>

               10.5.1.1  AT&T Originating Call charged to Customer Served by a
                         ------------------------------------------------------
                         BA Line. In the case of a call which originates from an
                         -------
                         AT&T Customer being served by a resold line in the BA
                         territory within Massachusetts (hereinafter "AT&T
                         Customer Resold Line") which is charged to a retail
                         Customer served by a BA line including a resold line in
                         BA territory within Massachusetts (hereinafter "BA
                         Massachusetts Territory"), BA shall record and process
                         such call, and transmit to AT&T an unrated call record.
                         AT&T shall rate such call for purposes of charging the
                         retail Customer and send such rated record to BA or a
                         resale carrier designated by BA in billable form for
                         billing and collection purposes, at which point AT&T
                         shall have no further responsibility for billing or
                         collecting for such call for BA retail Customers. BA,
                         for BA retail Customers only, shall pay AT&T for such
                         call the billed amount less the billing and collection
                         fee specified in Part IV. AT&T shall pay BA for the
                         call at the wholesale discount rate set forth in Part
                         IV as billed on the wholesale bill.

               10.5.1.2  BA Originating Call charged to AT&T Customer. In the
                         --------------------------------------------
                         case of a call which originates from a BA retail
                         Customer within Massachusetts and is charged to an AT&T
                         Customer Resold Line, BA shall record and process such
                         call and rate such call for purposes of charging AT&T's
                         Customer. BA shall send such rated record to AT&T in
                         billable form for billing and collection purposes, at
                         which point BA shall have no further responsibility for
                         billing or collecting for such call. AT&T shall pay BA
                         for such call the billed amount less the billing and
                         collection fee specified in Part IV.

               10.5.1.3  AT&T Originating Call charged to Other Carrier. In the
                         ----------------------------------------------
                         case of a call which originates from an AT&T Customer
                         Resold Line which is charged to a customer of a third
                         party Telecommunications Carrier outside BA
                         Massachusetts Territory, BA shall record and process
                         such call and transmit to AT&T an unrated call record,
                         at which point BA shall have no further responsibility
                         for rating, billing, or collecting for such call. AT&T
                         shall pay BA for such call at the wholesale discount
                         rate set forth in Part IV as billed on the wholesale
                         bill.

                                       15
<PAGE>

10.5.2    Calls on BA Resold Lines Using AT&T's Operator Services. The following
          -------------------------------------------------------
          procedures shall apply for Alternately Billed Calls which are local
          calls or IntraLATA toll calls carried by BA and originating or
          terminating over a BA line (x) which has been resold by AT&T pursuant
          to the terms of Part I of this Agreement and (y) for which BA is not
          providing operator and directory assistance services:

               10.5.2.1  AT&T Originating Call charged to BA Customer. In the
                         --------------------------------------------
                         case of a call which originates from an AT&T Customer
                         Resold Line and is charged to a BA retail Customer
                         within BA Massachusetts Territory, AT&T shall record
                         and process such call at its OSPS and rate such call
                         for purposes of charging BA's Customer and send such
                         rated record to BA in billable form for billing and
                         collection purposes, at which point AT&T shall have no
                         further responsibility for billing or collecting for
                         such call. BA shall pay AT&T for such call the billed
                         amount less the billing and collection fee specified in
                         Part IV. AT&T shall pay charges for Customized Routing
                         in accordance with Part IV, Section B. XIII of this
                         Agreement. Appropriate Reciprocal Compensation charges
                         for terminating to a BA line will apply pursuant to
                         Section 10.6 of this Agreement.

               10.5.2.2  BA Originating Call charged to AT&T Customer. In the
                         --------------------------------------------
                         case of a call which originates from a BA retail
                         Customer within Massachusetts and is charged to an AT&T
                         Customer Resold Line, BA shall record and process such
                         call and rate such call for purposes of charging AT&T's
                         Customer. BA shall send such rated record to AT&T in
                         billable form for billing and collection purposes, at
                         which point BA shall have no further responsibility for
                         billing or collecting for such call. AT&T shall pay BA
                         for such call the billed amount less the billing and
                         collection fee specified in Part IV.

               10.5.2.3  AT&T Originating Call charged to Other Carrier. In the
                         ----------------------------------------------
                         case of a call which originates from an AT&T Customer
                         Resold Line which is charged to a customer of a third
                         party Telecommunications Carrier providing services
                         outside BA Massachusetts Territory, AT&T shall record
                         and process such call. AT&T shall pay charges for
                         Customized Routing in accordance with Part IV, Section
                         B. XIII of this Agreement. Appropriate Reciprocal
                         Compensation charges for terminating to a BA line will
                         apply pursuant to Section 10.6

                                       16
<PAGE>

                              of this Agreement.

          10.5.3    Calls Billed to BA Resold Lines and Carried through CMDS and
                    ------------------------------------------------------------
                    CATS. The following procedures shall apply for Alternately
                    ----
                    Billed Calls which are local calls or IntraLATA toll calls
                    billed through the Centralized Message Distribution System
                    ("CMDS") and originating or terminating over a third
                    company's line and charged to a BA line which has been
                    resold by AT&T pursuant to the terms of Part I of this
                    Agreement.

                    10.5.3.1  Calls Carried through CMDS and CATS. In the case
                              -----------------------------------
                              of a call which originates and terminates outside
                              BA Massachusetts Territory and is charged to an
                              AT&T Customer Resold Line, BA shall provide to
                              AT&T the information and charges with respect to
                              such call received from the out-of-region
                              Telecommunications Carrier via the daily usage
                              feed. BA shall have no further responsibility for
                              rating, billing and collecting for such call. AT&T
                              shall pay BA for such call an amount equal to the
                              amount charged to BA through the CATS settlement
                              process by such out-of-region Telecommunications
                              Carrier with respect to such call as billed on the
                              wholesale bill and a Call Usage Detail Service
                              charge in accordance with Part IV, Section B, XI.
                              B1 of this Agreement.

          10.5.4    Administrative Matters. All other matters relating to the
                    ----------------------
                    rating, billing, payment and transmission of records with
                    respect to Alternately Billed Calls which are not set forth
                    above, including, without limitation, the timing of payments
                    and billings, the frequency of transmission of records and
                    the eligibility of messages for billing, shall be governed
                    by the other applicable provisions of this Agreement or, to
                    the extent not so provided, by the Joint Operations Plan.

          10.5.5    Other Alternate Billed Calls. A BA territory intraregion
                    ----------------------------
                    Alternate Billed Call clearinghouse will be used for
                    settling Alternately Billed Calls for facility-based and
                    unbundled Network Element purposes and, to the extent it can
                    be implemented, for calls originating or charged to an AT&T
                    Customer Resold Line (including BA lines resold by third
                    party carriers within Massachusetts).

10.6      Reciprocal Compensation.
          -----------------------

          (a)       Reciprocal Compensation only applies to the transport and
                    termination of Reciprocal Compensation Traffic.

                                       17
<PAGE>

          (b)  The Parties shall compensate each other for transport and
               termination of Reciprocal Compensation Traffic, based on
               actual usage, at the rates set forth in Part IV hereof.

          (c)  The Reciprocal Compensation arrangements set forth in this
               Agreement are not applicable to interLATA calls, intraLATA
               toll calls or to intraLATA calls originated on a third-party
               carrier's network on a 1 + presubscribed basis or a casual
               dialed (10XXX or 101XXXX) basis. All such calls shall
               continue to be governed by the terms and conditions of the
               applicable federal and state tariffs.

          (d)  When either Party delivers seven (7) or ten (10) digit
               translated intraLATA 800/888 service to the other Party for
               termination, where the originating Party uses its own switch
               (i.e., not utilizing unbundled switching from the terminating
                ----
               Party), the originating Party shall provide the terminating Party
               with customer billing records in industry standard format (EMR)
               if required by the terminating Party. Where the originating Party
               utilizes unbundled switching from the terminating Party, the
               Party with recording capability will provide such records. Where
               the originating Party uses its own switch (not utilizing
               unbundled switching) to originate the call, the originating Party
               may bill the terminating Party for the delivery of the traffic at
               Reciprocal Compensation rates. The terminating Party may not bill
               the originating Party for Reciprocal Compensation under this
               Agreement, except where the originating Party fails to provide
               the terminating Party with useable EMR records in a timely
               manner. The originating Party shall bear the entire cost of any
               systems development and production of such records; provided that
               the terminating Party that is providing the 800/888 service shall
               pay for each record provided by the originating Party at the
               reciprocal record exchange rate set forth in Part IV hereof. If
               the originating Party performs the 800 database query for the
               terminating Party, the originating Party may charge the
               terminating Party for such a query at the rate set forth in Part
               IV hereof.

          (e)  Each Party shall charge the other Party its effective
               applicable tariffed IntraLATA switched access rates for the
               transport and termination of all IntraLATA Toll Traffic.

          (f)  The rates for termination of Reciprocal Compensation Traffic
               are set forth in Part IV.

                                       18
<PAGE>

 11. Service Standards.
     -----------------

          The Parties hereby agree that the performance standards and remedies
approved by the Department in the Consolidated Arbitrations, D.P.U. 96-73/74,
96-75, 96-80/81, 96-83 and 96-94, shall be incorporated by reference into this
Agreement and shall govern the provision of services hereunder, as applicable.

 12. OSS/Electronic Interfaces.
     -------------------------

     (a)  Each BA service order completion (with the exception of complete
          account conversions processed through the BA Service Order Processor
          ("SOP") system, e.g., complex services or accounts of 10 lines or
          greater) shall contain all working telephone numbers ("WTNs") that
          were processed on the service order. Should BA develop the capability
          of providing WTNs on orders completed through the SOP system for
          itself during the Term of this Agreement, BA will make such capability
          for SOP-processed orders available to AT&T. The Parties mutually agree
          to continue discussions regarding the feasibility, timeframes and cost
          to implement such SOP capabilities for AT&T Customers.

     (b)  Migration as Specified.

          (i)  With respect to Local Services customers, AT&T may submit service
               orders for agreed upon service types for BA end users who convert
               their existing local exchange service to services resold by AT&T
               by submitting a service order which indicates the desired service
               configuration for each end user line being converted. By
               submitting such service orders, AT&T directs BA to remove all
               services except for those delineated below and to connect only
               those services stated on the service order without disconnecting
               the line. At this time, BA will not support this migration-as-
               specified service order process for partial acquisitions (i.e.
               those end user accounts for which AT&T seeks to convert some, but
               not all, of the end user lines associated with a single Billed
               Telephone Number). BA agrees that BA will explore the possibility
               of performing migration-as-specified service order processing for
               partial migrations in the future. BA shall convert such end user
               line retaining the end user's existing telephone number (except
               as otherwise provided in Part I(E)), directory listing
               information, appearance in the E911 database, disability
               designations, demarcation information, and voluntary blocking
               selection. BA shall provision such resold line only with the
               existing above referenced line characteristics and the service
               configuration provided by AT&T in the service order.

          (ii) [Intentionally omitted]

                                       19
<PAGE>

          (iii)     If the service order is incomplete, insufficient, incorrect,
                    or contains conflicting information such that BA is not able
                    to process the order, BA may reject such service order. Any
                    such rejection shall not be considered in any manner in
                    measuring or calculating BA's service performance or
                    satisfying any measurements. Notwithstanding anything to the
                    contrary set forth in this Agreement, (x) in the absence of
                    gross negligence or willful misconduct, BA shall have no
                    liability to AT&T, any AT&T customer, or any other third
                    party as a result of or otherwise in connection with the
                    rejection of any migration-as-specified service order; and
                    (y) AT&T shall indemnify BA and hold BA harmless from and
                    against any and all claims, losses, liabilities and damages
                    to third parties incurred by BA by reason of such
                    incomplete, insufficient, incorrect or otherwise erroneous
                    migration-as-specified service order.

          (iv)      BA shall develop this new service order capability and have
                    it in service to handle a commercially reasonable volume of
                    service orders by March 1, 1998 for Local Services. The
                    Parties shall mutually agree to the expansion of this
                    service order capability to additional service types.

          (v)       Appropriate OSS charges as set forth in Part IV shall apply.
                    Additionally, AT&T shall pay BA its apportioned share of
                    reasonable direct development costs, to the extent not
                    previously recovered from AT&T, for migration-as specified
                    capability (collectively, "Migration-as-Specified Costs").
                    Prior to incurring such Migration-as Specified Costs, BA
                    shall submit a good faith estimate of such development costs
                    to AT&T. AT&T shall notify BA within ten (10) business days
                    from receipt of such estimate as to whether or not BA should
                    proceed with the development of migration-as-specified
                    capability for Local Services. If AT&T notifies BA to
                    proceed, BA shall continue to develop such capability and
                    AT&T shall be obligated, as stated herein, to pay BA its
                    development costs. Subsequent to the implementation of
                    migration-as specified capability by BA, the parties agree
                    that BA will calculate Migration-as-Specified Costs and
                    submit such costs to AT&T. If AT&T disputes such costs, such
                    dispute shall be submitted pursuant to Section 16 of the
                    General Terms and Conditions to determine (x) if BA actually
                    incurred such costs for the development of this service
                    order process capability to AT&T; and (y) that such costs
                    were reasonably incurred in order to provide this service
                    order process capability to AT&T.

          (vi)      The Parties shall negotiate in good faith to agree on
                    documented interface specifications and a mutually
                    acceptable testing period for the service order capability
                    described above. AT&T agrees to provide prior written notice
                    to BA in the event it decides to use such service order
                    capability for any high

                                       20
<PAGE>

                    volume, unusual quantity or other non-ordinary course of
                    business request sufficiently prior to the date it expects
                    to effect such order so that BA may adequately implement the
                    same, and will agree to further testing in connection
                    therewith to the extent required to assure proper
                    implementation. The Parties shall work cooperatively to
                    assure that any problems in connection with implementation
                    and the provision of such service order capabilities are
                    resolved.

          (vii)     AT&T and BA acknowledge and agree that the new service order
                    process provided herein shall only be utilized by AT&T to
                    place orders in a fully mechanized flow through environment.
                    The parties further agree that any changes to this service
                    order type that the parties may undertake to negotiate shall
                    preserve and not degrade such fully mechanized processes.

          (viii)    AT&T's agreement to pay such development costs herein does
                    not preclude AT&T from asserting a position against BA's
                    recovery of other development costs before appropriate
                    regulatory bodies. The Parties agree that this migration-as-
                    specified provision shall not be used to support either
                    Party's position as to the appropriate means for BA to
                    recover its costs to develop service order processing
                    capabilities.

     (c)  AT&T may submit a service order correction, change, supplement or
          cancellation (a "Change Order") with respect to an initial service
          order for Local Services and unbundled Network Elements at any time
          after such service order has been transmitted to BA. BA anticipates
          rejecting such Orders (i) for incorrect information contained in the
          Change Order; and (ii) in those instances when the Order has been
          removed from queue for processing. If such Change Order is rejected
          for reasons other than incorrect information supplied with the Change
          Order, AT&T may, at its option, contact its BA service representative
          for manual intervention on a real time basis. The Parties shall
          cooperate to resolve any problems which may arise in connection with
          such service order process. For Local Services, BA will use
          commercially reasonable efforts to implement the new process by
          December 1, 1997 or sooner, as mutually agreed to by the parties. The
          Parties shall mutually agree to an implementation date for unbundled
          Network Elements.

     (d)  As further described in the attached Appendix A to the General Terms
          and Conditions of this Agreement, the parties agree to work together
          to develop and implement application-to-application electronic
          interfaces which already conform or will conform to national standards
          for primary interfaces* adopted by appropriate

______________________________

*    As used herein, the term "Primary Interface" relates to the interface which
is designated as primary interface amongst more than one alternative offering by
an impartial, recognized standards body in the United States.

                                       21
<PAGE>

          industry standards bodies, for the conduct of local service resale,
          unbundled Network Elements, and the interconnect business between
          ILECs and CLECs. The specifications stated in Appendix A reflect the
          Parties' reasonable interpretation of what they believe, at the
          present time, to be the future national standards. Both Parties agree
          that the interfaces which will be implemented pursuant to Appendix A
          will not be proprietary to either party and that information related
          to these interfaces will be made publicly available in accordance with
          Applicable Laws. Neither party waives any of its rights as a
          participant in industry forums in the development and implementation
          of national standards. The Parties acknowledge that the state of the
          art in this area is rapidly changing. The Parties agree that this
          Section 12(d) of the Agreement and Appendix A hereto and any joint
          implementation plans pursuant to Appendix A do not imply and shall not
          be used in any manner to demonstrate that (i) existing BA interfaces
          do or do not meet OSS requirements established by appropriate
          regulatory bodies; (ii) adoption of national standards is a
          requirement under the Act, the Order, or Applicable Laws; or (iii) a
          particular means of cost recovery is appropriate or not, except to the
          extent the Parties have agreed to cost recovery herein. Except for the
          foregoing neither party waives its rights to present its positions
          with respect to the adequacy of BA's existing and future interfaces
          and the need for national standards.

     (e)  The Parties acknowledge that activities similar to those described in
          this Section 12 and Appendix A to these General Terms and Conditions
          are currently underway in New York pursuant to the NY Agreement and
          that, where practical, the Parties do not intend unnecessarily to
          duplicate performance thereunder.

13.  Operations Plan and Implementation Team. The Parties agree to an
     ---------------------------------------
Implementation Plan as set forth in Attachment 2 to this Agreement.

14.  Force Majeure.
     -------------

     (a)  Neither Party shall be liable for any delay or failure in performance
          of any part of this Agreement (other than an obligation to make money
          payments) from any cause beyond its reasonable control and without its
          fault or negligence including, without limitation, acts of nature,
          acts of civil or military authority, government regulations,
          embargoes, epidemics, terrorist acts, riots, insurrections, fires,
          explosions, earthquakes, nuclear accidents, floods, work stoppages,
          strikes, equipment failure, power blackouts, volcanic action, other
          major environmental disturbances, unusually severe weather conditions,
          inability to secure products or services of other persons or
          transportation facilities, or acts or omissions of transportation
          carriers (each, a "Force Majeure Event"). If any Force Majeure Event
          occurs, the Party delayed or unable to perform shall give prompt
          notice to the other Party and shall take all reasonable steps to
          mitigate the effects of such Force Majeure Event. During the

                                       22
<PAGE>

          pendency of the Force Majeure Event, the duties of the Parties under
          this Agreement affected by the Force Majeure Event shall be abated
          and, upon cessation of such Force Majeure Event, shall resume as
          promptly as reasonably practicable, without liability thereafter.

     (b)  Notwithstanding paragraph (a) of this Section 14, no delay or other
          failure to perform shall be excused pursuant to this Section 14 by the
          acts or omissions of a Party's subcontractors, materialmen, suppliers
          or other third persons providing products or services to such Party
          unless such acts or omissions are themselves the product of a Force
          Majeure Event, or unless such delay or failure and the consequences
          thereof are beyond the reasonable control and without the fault or
          negligence of the Party claiming excusable delay or other failure to
          perform.

15.  Certain State and Local Taxes.  Each Party purchasing services hereunder
     -----------------------------
shall pay or otherwise be responsible for all federal, state, or local sales,
use, excise, gross receipts, transaction or similar taxes, fees or surcharges
levied against or upon such purchasing Party (or the providing Party when such
providing Party is permitted to pass along to the purchasing Party such taxes,
fees or surcharges), except for any tax on either Party's corporate existence,
status or income (other than income taxes included in rates through the
computation of carrying charge factors). Whenever possible, these amounts shall
be billed as a separate item on the invoice. To the extent a sale is claimed to
be qualified for resale tax exemption, the purchasing Party shall furnish the
providing Party a proper resale tax exemption certificate as authorized or
required by statute or regulation by the jurisdiction providing said resale tax
exemption. Failure to timely provide said resale tax exemption certificate will
result in no exemption being available to the purchasing Party.

16.  Dispute Resolution.
     ------------------

     (A)  Inter-Company Review Board:
          ---------------------------

          (1)  The Parties to this Agreement shall establish an Inter-Company
               Review Board consisting of at least one representative from each
               Party at the managing director or above level (or such lower
               level as the Parties agree) to assist in the resolution of
               disputes between BA and AT&T.

               (a)  Each Party must designate its initial representative to the
                    Inter-Company Review Board within 15 days of the Effective
                    Date of this Agreement.

               (b)  The Parties may change their designee, or select an
                    alternative designee, as required or deemed appropriate,
                    without notice.

                                       23
<PAGE>

     (B)  Non-Service Affecting Disputes:
          ------------------------------

     If a non-service affecting dispute arises between BA and AT&T during the
     Term of the Agreement, the following process, which shall be overseen by
     the Department, shall be followed to resolve such dispute. In the event the
     Parties, in good faith, do not agree that a non-service affecting dispute
     exists, the dispute shall be assumed to be a service affecting dispute
     (except as provided in Paragraph (C) below) and the process for resolving a
     service affecting dispute, as described in Paragraph (C) below, shall be
     followed.

          (1)  Informal Negotiation of Non-Service Affecting Dispute.
               -----------------------------------------------------

               If the Parties have a non-service affecting dispute either Party
               may initiate the procedures set forth herein by providing notice
               of the existence of a non-service affecting dispute as set forth
               in Section 17 of the General Terms and Conditions of the
               Agreement. The petitioning party shall also serve the Department
               and the Inter-Company Review Board with a copy of the notice.

               (a)  The Parties shall have an initial 30-day period beginning
                    from the date on which either Party has provided written
                    notice to the other Party identifying the existence of a
                    non-service affecting dispute within which to resolve the
                    dispute themselves, without mediation or arbitration as
                    provided below. The Parties shall make a reasonable effort
                    to meet as often as necessary but not less than one time
                    each week in an effort to resolve a dispute.

               (b)  The Parties may also mutually agree to other informal
                    resolution processes for specific circumstances, including,
                    but not limited to commercial mediation or arbitration prior
                    to requesting the Department initiate mediation or
                    arbitration of any non-service affecting dispute between BA
                    and AT&T.

          (2)  Formal Mediation or Expedited Investigation/Arbitration of Non-
               ----------------------------------------------------------------
               Service Affecting Dispute by the Department.
               -------------------------------------------

               If the Inter-Company Review Board is unable to resolve a non-
               service affecting dispute within thirty (30) days (or such other
               period agreed to in writing by the Parties) either Party may
               petition the Department. The initial petition shall be for
               mediation. If agreement cannot be reached through mediation, the
               aggrieved Party may then petition the Department for expedited
               investigation/arbitration. The mediation and expedited
               investigation/arbitration process shall be overseen by the
               Department.

                                       24
<PAGE>

          (a)  A request for mediation shall be submitted in writing to the
               Department, with a copy served on the other Party.

          (b)  The period of mediation shall be 60 days commencing on the date
               of filing of such petition for mediation. Such petition shall
               include a request to the Department to choose a mediator within
               the first 10 days of such 60 day period, and the mediation shall
               be conducted by a mediator designated by the Department. The
               Department may assign a staff person or a professional mediator,
               funded equally by the Parties, to conduct the mediation. The
               Parties shall cooperate in good faith with the mediator to
               resolve the dispute within such 60 day period. If, at any date
               following the 45th day of such 60 day period, the Parties have
               not resolved their dispute, the Parties may request the mediator
               formally declare a deadlock.

          (c)  Following the earlier to occur of (i) expiration of the 60-day
               mediation period without resolution of the dispute between the
               Parties or (ii) formal declaration of a deadlock by the mediator
               as contemplated in preceding paragraph (b), either Party may
               petition the Department to open an expedited
               investigation/arbitration into the dispute. The petition should
               include a comprehensive explanation of the dispute (e.g.,
               unresolved issues, areas of agreement, stipulations of fact), as
               well as all relevant correspondence exchanged during negotiations
               or mediation. The petitioning Party shall provide a copy of the
               petition to the other Party on the same day that it is filed with
               the Department. The petition shall include a request to open an
               expedited investigation/arbitration within 10 business days of
               receipt of its petition. The Department may assign a staff person
               or a professional arbitrator, funded equally by the Parties, to
               conduct the expedited investigation/arbitration which shall be no
               more than 60 days. The staff person or arbitrator shall issue and
               serve his or her decision and award on the Parties within 20
               business days of the close of the investigation/arbitration. Any
               such decision shall be submitted to the Department for approval,
               unless otherwise provided by the Department.

     (C)  Service Affecting Disputes:
          --------------------------

          If a service affecting dispute arises between BA and AT&T during the
          Term of the Agreement, the following process, which shall be overseen
          by the Department, shall be followed to resolve such dispute. Any
          disputes over a matter that directly affects the ability of a Party to
          provide uninterrupted high-quality services to its customers

                                       25
<PAGE>

     shall be considered a service affecting dispute. However, in the sole
     discretion of the Party identifying the existence of the service affecting
     dispute, said dispute may be resolved in accordance with the general
     procedures/timeframes for a non-service affecting dispute, as described
     above. The Parties agree that disputes regarding collocation remedies in
     Exhibit A to Part III hereof shall not constitute service affecting
     disputes.

     (1)  Informal Negotiation of Service Affecting Dispute.
          -------------------------------------------------

          If the Parties have a service affecting dispute either Party may
          initiate the procedures set forth herein by providing notice of the
          existence of a service affecting dispute as set forth in Section 17 of
          the General Terms and Conditions of the Agreement. The petitioning
          party shall also serve the Department and the Inter-Company Review
          Board with a copy of the notice.

          (a)  The Parties shall have an initial 5 business day period beginning
               from the date on which either Party has provided written notice
               to the other Party identifying the existence of a service
               affecting dispute and seeking to resolve it, within which to
               resolve the dispute themselves through the Inter-Company Review
               Board, without mediation or arbitration as provided below, except
               as set forth in subsection (b) below. The Parties shall make a
               reasonable effort to meet as often as necessary but not less than
               once in an effort to resolve the dispute.

          (b)  The Parties may also mutually agree to other informal resolution
               processes for specific circumstances, including, but not limited
               to commercial mediation or arbitration prior to requesting the
               Department to initiate mediation or arbitration of a service
               affecting dispute between BA and AT&T.

     (2)  Formal Expedited Investigation/Arbitration of Service Affecting
          ---------------------------------------------------------------
          Dispute by the Department.
          -------------------------

          If the Inter-Company Review Board is unable to resolve a service
          affecting dispute within 5 business days (or such other period agreed
          to in writing by the Parties) either Party may petition the Department
          for expedited consideration and disposition of such dispute pursuant
          to paragraph B(2)(c) above. There shall be no period of mediation. The
          other Party shall assent to such request for expedition. In addition,
          to the extent technically and operationally feasible, the Party
          against whom the complaint has been made, shall take immediate
          remedial action to correct the service affecting condition, without
          prejudice to its position on the merits of the dispute or its

                                       26
<PAGE>

          right to recover any costs incurred in implementing an interim
          solution. The staff person or arbitrator appointed by the Department
          shall issue and serve his or her decision and award on the Parties
          within 10 business days of the close of the investigation/arbitration.
          Such decision shall be submitted for approval by the Department,
          unless otherwise provided by the Department.

(D)  Confidentiality:
     ---------------

     (1)  BA, AT&T, and the arbitrator will treat the arbitration proceedings,
          including the hearings and conferences, discovery, or other related
          events, as confidential, except as necessary in connection with a
          judicial challenge to, or enforcement of, an award, or unless
          otherwise required by an order or lawful process of a court or
          governmental body.

     (2)  In order to maintain the privacy of all arbitration conferences and
          hearings, the arbitrator shall have the power to require the exclusion
          of any person, other than a Party, counsel thereto, or other essential
          persons.

     (3)  To the extent that any information or materials disclosed in the
          course of an arbitration proceeding contain proprietary, trade secret
          or confidential information of either Party, it shall be safeguarded
          in accordance with an appropriate agreement for the protection of
          proprietary, trade secret or confidential information that the Parties
          agree to negotiate. However, nothing in such negotiated agreement
          shall be construed to prevent either Party from disclosing the other
          Party's information to the arbitrator in connection with or in
          anticipation of an arbitration proceeding. In addition, the arbitrator
          may issue orders to protect the confidentiality of proprietary
          information, trade secrets, or other sensitive information in the
          event the Parties cannot agree upon an agreement to govern the
          handling of such information.

17.  Notices.  Any notices or other communications required or permitted to be
     -------
given or delivered under this Agreement shall be in hard-copy writing (unless
otherwise specifically provided herein) and shall be sufficiently given if (a)
delivered personally, (b) delivered by prepaid overnight express service or (c)
delivered by confirmed telecopier transmission with a copy delivered thereafter
in the manner set forth in (a) or (b) above, to the following (unless otherwise
specifically required by this Agreement to be delivered by other means or to
another representative or point of contact and except for notices required in
the ordinary course of business):

                                       27
<PAGE>

          If to AT&T:
          AT&T Communications of New England, Inc.
          32 Avenue of the Americas
          New York, NY 10013
          Attention: Vice President-Northeast States, LSO
          Telecopier: (212) 387-4908

          with a copy of each notice relating to an action, suit,
          proceeding or claim to be sent simultaneously to:

          AT&T Corp.
          32 Avenue of the Americas
          26th Floor
          New York, NY 10013
          Attention: Regional V.P. - Law and Government Affairs
          Telecopier: (212) 387-5613

          If to BA:
          BA
          1095 Avenue of the Americas
          40th Floor
          New York, NY 10036
          Attention: President -Telecom Industry Services
          Telecopier: (212) 597-2562

          with a copy of each notice relating to an action, suit,
          proceeding or claim to be sent simultaneously to:

          BA
          1095 Avenue of the Americas
          40th Floor
          New York, NY 10036
          Attention: General Counsel
          Telecopier: (212) 597-2560

     Either Party may unilaterally change its designated representative and/or
address for the receipt of notices by giving seven (7) days' prior written
notice to the other Party in compliance with this Section. Any notice or other
communication shall be deemed given when received.

                                       28
<PAGE>

 18. Confidentiality.
     ---------------

     (a)  Any information such as specifications, drawings, sketches, business
          information, forecasts, models, samples, data, computer programs and
          other software and documentation of one Party (a "Disclosing Party")
          that is furnished or made available or otherwise disclosed to the
          other Party or any of its employees, contractors, agents or Affiliates
          (its "Representatives" and, together with a Party, a "Receiving
          Party") pursuant to this Agreement (such information, other than
          customer proprietary network information, as defined in Section
          222(f)(1) of the Act, being hereinafter collectively referred to as
          "Proprietary Information") shall be deemed the property of the
          Disclosing Party. Proprietary Information, if written, shall be marked
          "Confidential" or "Proprietary" or by other similar notice, and, if
          oral or visual, shall be confirmed in writing as confidential by the
          Disclosing Party to the Receiving Party within ten (10) days after
          disclosure. Unless Proprietary Information was previously known by the
          Receiving Party free of any obligation to keep it confidential, or has
          been or is subsequently made public by an act not attributable to the
          Receiving Party, or is explicitly agreed in writing not to be regarded
          as confidential, or is independently developed by the Receiving Party,
          the Parties hereby agree that in addition to the confidentiality
          requirements set forth in the Act and the Order, all Proprietary
          Information (i) shall be held in confidence by each Receiving Party;
          (ii) shall be disclosed on a confidential basis to only those persons
          who have a need for it in connection with the provision of services
          required to fulfill this Agreement and shall be used only for such
          purposes; and (iii) may be used for other purposes only upon such
          terms and conditions as may be mutually agreed to in advance of use in
          writing by the Parties. Notwithstanding the foregoing sentence, a
          Receiving Party shall be entitled to disclose or provide Proprietary
          Information as required by any governmental authority or applicable
          law only in accordance with Section 18(b) below.

     (b)  If any Receiving Party is required by any governmental authority or by
          applicable law to disclose any Proprietary Information, then such
          Receiving Party shall provide the Disclosing Party with written notice
          of such requirement, to the extent permitted by law, as soon as
          possible and, where possible, prior to such disclosure. The Disclosing
          Party may then seek appropriate protective relief from all or part of
          such requirement, and the Receiving Party shall use all commercially
          reasonable efforts to cooperate with the Disclosing Party in
          attempting to obtain any protective relief which such Disclosing Party
          chooses to obtain. Absent any restraining order or other relief
          prohibiting any such disclosure by the Receiving Party, then the
          Receiving Party shall be entitled to disclose such Proprietary
          Information and shall incur no liability hereunder as a result
          thereof.

                                       29
<PAGE>

     (c)  In the event of the expiration or termination of this Agreement for
          any reason whatsoever, each Party shall return to the other Party or
          destroy all Proprietary Information and other documents, work papers
          and other material (including all copies thereof) obtained from the
          other Party in connection with this Agreement and shall use all
          reasonable efforts, including instructing its employees and others who
          have had access to such information, to keep confidential and not to
          use any such information, unless such information is now, or is
          hereafter disclosed, through no act, omission or fault of such Party,
          in any manner making it available to the general public.

     (d)  Except as may be otherwise provided herein, by Applicable Law or in
          any FCC rules or procedures hereinafter issued, BA shall not use any
          AT&T data, even if the AT&T data is in aggregated form, for retail
          marketing purposes, unless such data was previously known by BA free
          of any obligation not to use such data for retail marketing purposes,
          has been or is subsequently made public by an act not attributable to
          BA or is explicitly agreed in writing not to be subject to the
          restriction set forth in this Section 18(d).

     (e)  BA shall provide to AT&T documentation of BA operational flows within
          60 days after the Effective Date of this Agreement to help ensure that
          Section 18(d) above is being complied with by BA.

     (f)  The Receiving Party may make copies of Proprietary Information only as
          reasonably necessary to perform its obligations under this Agreement.
          All such copies shall bear the same copyright and proprietary rights
          notices as are contained on the original.

     (g)  Except as otherwise expressly provided elsewhere in this Agreement, no
          license is hereby granted under any patent, trademark, or copyright,
          nor is any such license implied, solely by virtue of the disclosure of
          any Proprietary Information.

     (h)  The Parties acknowledge and agree that CPNI is governed by Section 222
          of the Act.

 19. Number Portability.
     ------------------

      19. Interim Number Portability.
          --------------------------

          (a)  Until Number Portability is implemented on an industry-wide basis
               pursuant to an order or regulation issued by the FCC or the
               Department, the Parties agree to provide to each other Interim
               Number Portability as defined in the Act, ("INP") through remote
               call forwarding, route indexing, and full NXX code migration as
               set forth below or through any other technical solution which
               may, at the option of the Parties, be mutually agreed to by the
               Parties.

                                       30
<PAGE>

          (b)  Upon implementation of Number Portability pursuant to an FCC or
               Department regulation, both Parties agree to conform and provide
               such Number Portability in accordance with said regulation. Once
               Number Portability is implemented, either Party may withdraw, at
               any time and at its sole discretion, its INP offerings, subject
               to reasonable advance written notice to the other Party.

          (c)  In the event a Customer of one Party ("Party A") elects to become
               a Customer of the other Party ("Party B") and such Customer
               continues to reside within the same central office boundary and
               Rate Center, and elects to utilize the original telephone
               number(s) corresponding to the Exchange Service(s) it previously
               received from Party A in conjunction with the Exchange Service(s)
               it will now receive from Party B:

               (i)       Party B shall, upon receipt from such Customer of the
                         type of customer authorization required by the
                         Department or the FCC (together with an associated
                         service order which, among other things, indicates that
                         Party B has obtained the required customer
                         authorization permitting assignment of the number to
                         Party B), place an order with Party A to implement an
                         arrangement whereby all calls to the original telephone
                         number(s) will be forwarded to Party B over the
                         appropriate Local/IntraLATA trunks for purposes of
                         forwarding the call.

               (ii)      Party B shall become the customer of record for the
                         original Party A telephone numbers subject to the INP
                         arrangements provided that Party B continues to use the
                         INP service for the use of the end user customer
                         originally assigned such number, and in all respects
                         shall be treated as the customer as to such number as
                         if Party B has been assigned such number. Party A shall
                         use its reasonable efforts to consolidate into as few
                         billing statements as possible all collect, calling
                         card, and third-number billed calls associated with
                         those numbers, with sub-account detail by retained
                         number. The parties shall work cooperatively to enable
                         Party A to provide such billing statement to Party B in
                         an agreed-upon format via either electronic file
                         transfer, daily magnetic tape, or monthly magnetic
                         tape.

               (iii)     Party A will update its Line Information Database
                         ("LIDB") listings for retained numbers, as directed by
                         Party B, and cancel calling cards associated with those
                         forwarded numbers.

                                       31
<PAGE>

               (iv)      Within two (2) business days of receiving notification
                         from the new Local Services carrier or the Customer
                         terminating service with Party B, Party B shall notify
                         Party A of the Customer's termination of service with
                         Party B. Party A will cancel the INP arrangements for
                         such Customer's telephone number(s). In the event Party
                         A changes its telephone numbers, it may discontinue
                         providing INP service as to such numbers.

          (d)  Procedures for Providing INP Through Route Indexing. Either Party
               ---------------------------------------------------
               may deploy a Route Index arrangement which combines direct trunks
               provisioned between BA's and AT&T's end offices with trunk side
               routing translations. Under this arrangement, inbound calls to a
               ported number will be pointed at a Route Index that sends the
               call to a dedicated trunk group, built as a direct final, for the
               sole purpose of facilitating completion for calls to a ported
               number. Each Party will coordinate with the other to provide this
               solution in a mutually agreeable and administratively manageable
               manner (e.g., NXX level) so as to minimize switch resource
               utilization for both Parties. AT&T shall pay to BA all costs and
               expenses incurred by BA in implementing such Route Indexing
               through tandems as requested by AT&T including, without
               limitation, all costs and expenses arising out of the development
               of necessary translations/reprogramming of existing trunk
               routing, the provision of additional dedicated trunks serving
               each affected tandem and the establishment of increased call
               processing and memory capacity to handle the increased volume of
               traffic, codes, translations and routing domains for all affected
               tandem or end office switches.

          (e)  Procedures for Providing INP Through Full NXX Code Migration.
               ------------------------------------------------------------
               Where either Party has activated an entire NXX for a single
               Customer, or activated a portion consisting in excess of fifty
               percent (50%) of an NXX Code for a single Customer with the
               remaining numbers in that NXX either reserved for future use or
               otherwise unused, if such Customer chooses to receive service
               from the other Party, the first Party shall cooperate with the
               second Party to have the entire NXX reassigned in the LERG (and
               associated industry databases, routing tables, etc.) to an end
               office operated by the second Party. Such transfer will be
               accomplished with appropriate coordination between the Parties
               and subject to lead times specified in ATTIS Numbering Committee
               Guidelines 95-0407-008 C.O. code (NXX) Assignment guidelines and
               NOF Reference Document, Part II, Section 2.3, NXX Code Openings,
               for movements of NXXs from one switch to another.

          (f)  The Parties shall pay to each other for ported telephone numbers
               the amounts determined in accordance with the Rochester Plan
               formula as referenced in

                                       32
<PAGE>

               Phase 3 of the Arbitration Award. Terminating IXC access charges
               shall be shared between BA and AT&T pursuant to meet-point
               billing arrangements between the Parties using special estimated
               studies until such time as actual meet-point billing records are
               available.

      19.2     Number Reassignment. BA shall not be required to reassign to AT&T
               -------------------
thousand number blocks (i.e., split NXX codes into blocks of a thousand numbers)
in the Local Exchange Routing Guide ("LERG") except to the extent that BA agrees
to such reassignment consistent with a change in the national guidelines for
Central Office Code assignments.

20.  Directory Listings and Directory Distributions.
     ----------------------------------------------

     (a)  BA will include those AT&T Customers of Local Services resold by AT&T
          from BA pursuant to Part I hereof in its "White Pages" and "Yellow
          Pages" directory listings in accordance with the terms of Appendix A
          of Part I, and will distribute such directories to such customers, in
          an identical and transparent manner in which it provides those
          functions for its own customers' telephone numbers.

     (b)  With respect to all other AT&T Customers, BA will include such AT&T
          Customers' telephone numbers in all of its "White Pages" and "Yellow
          Pages" directory listings (including electronic directories) and
          directory assistance databases associated with the areas in which AT&T
          provides services to such Customers, and will distribute such
          directories to such Customers, in an identical and transparent manner
          in which it provides those functions for its own Customers' telephone
          numbers.  In this Section 20, references to AT&T Customer telephone
          numbers means telephone numbers falling within NXX codes directly
          assigned to AT&T and to numbers which are retained by AT&T on the
          customer's behalf pursuant to Interim Number Portability arrangements
          described in Section 19 of the General Terms and Conditions of this
          Agreement.

     (c)  BA will include all AT&T NXX codes on appropriate existing calling
          charts in the BA Customer Guide section of the directory in the same
          manner as it provides this information for its own NXX Codes. BA shall
          assist AT&T in dealing with Bell Atlantic Yellow Pages Company to
          facilitate Bell Atlantic Yellow Pages Company's publication of AT&T
          Calling Charts or other AT&T information in the front portion of Bell
          Atlantic Yellow Pages Company directories distributed in the MA
          Region.

     (d)  AT&T will provide BA with its directory listings and daily updates to
          those listings (including new, changes, and deleted listings) on a
          non-exclusive basis in a mutually agreed upon format at no charge.

                                       33
<PAGE>

     (e)  BA will accord AT&T's directory listing information the same level of
          confidentiality which BA accords its own  directory listing
          information.

     (f)  BA shall provide AT&T at no charge with directory distribution for
          AT&T Customers. The Parties hereby acknowledge and agree that BA is
          not required, as per applicable tariffs, to provide more than one free
          white pages directory listing for each CENTREX system purchased for
          resale, regardless of the number of CENTREX lines purchased as part of
          such system.

     (g)  BA will provide AT&T with a report of all AT&T customer listings 90
          days prior to directory publication in such form and format as may be
          mutually agreed to by both parties. Both Parties shall use their best
          efforts to ensure the accurate listing of such information.

     (h)  BA will work cooperatively with AT&T so that Yellow Page
          advertisements purchased by Customers who switch their service to AT&T
          (including Customers utilizing Interim Number Portability) are
          maintained without interruption. BA will allow AT&T customers to
          purchase new Yellow Pages advertisements without discrimination, under
          the identical rates, terms and conditions that apply to BA's
          customers.

     (i)  BA will include, on one-eighth of a page, in the "Information Pages"
          or comparable section of its White Pages Directories for areas served
          by AT&T in the MA Region, listings provided by AT&T for AT&T's
          installation, repair and customer service and other customer service-
          oriented information, including appropriate identifying logo. Such
          listings shall appear in the manner that such information appears for
          subscribers of BA and other LECs. BA shall not charge AT&T for
          inclusion of this information.

     (j)  Electronic Format Directory Assistance.  Upon at least thirty days
          --------------------------------------
          notice from AT&T, BA shall provide to AT&T in electronic format BA's
          master directory assistance listing for BA end user customers in the
          MA Region, exclusive of non-published numbers to the extent that BA is
          prohibited from selling or offering to sell such numbers under
          Applicable Law. BA shall also provide AT&T with updates (containing
          adds, deletes and changes only) to these listings, at the same
          frequency that BA updates its own directory assistance databases.  The
          Parties shall mutually agree to content, format and timing
          specifications for these directory assistance listings. Such directory
          assistance listings shall only be used by AT&T for the purpose of
          providing local directory assistance to AT&T local exchange service
          customers.  AT&T shall pay BA a rate based on the cost of providing
          directory assistance listings and updates in an electronic format,
          including a reasonable profit.

                                       34
<PAGE>

 21. Subscriber List Information.
     ---------------------------

     (a)       At AT&T's request, in accordance with Section 222(e) and (f) of
               the Act, for the purpose of publishing a directory in any format,
               BA shall provide to AT&T published Subscriber List Information on
               a timely basis via readily accessible tape or electronic formats
               on the same terms and conditions and at the same rates that BA
               provides its own Subscriber List Information to third party
               directory publishers. Changes to the Subscriber List Information
               shall be available on a timely basis through the same tape or
               electronic transfer means used to transmit the initial Subscriber
               List Information at the same rates and on the same terms and
               conditions that BA provides its own Subscriber List Information
               to third party directory publishers. Subscriber List Information
               provided by BA shall indicate whether the customer is a residence
               or business customer.

     (b)       BA shall provide Subscriber List information that includes AT&T
               Customers to third parties, as required by the Act, on the same
               terms and conditions and at the same rates that BA provides its
               own Subscriber List Information to third parties. AT&T shall
               receive its pro-rata share (calculated based on the proportionate
               share of AT&T Customers to the total number of customers included
               in the Subscriber List Information) of net proceeds realized by
               BA from third parties for such Subscriber List Information;
               provided, however, that BA shall not be required to include AT&T
               Customers in Subscriber List Information sales to third parties
               (other than AT&T) if BA promptly notifies AT&T of all requests by
               third party directory publishers and others for AT&T Subscriber
               List Information thus permitting AT&T to deal directly with said
               third parties.

22.  Miscellaneous.
     -------------

     22.1      Delegation or Assignment - Neither Party may assign or transfer
               ------------------------
               (whether by operation of law or otherwise) this Agreement (or any
               rights or obligations hereunder) to a third party without the
               prior written consent of the other Party which consent shall not
               be unreasonably withheld or delayed; provided, however, each
               Party may assign this Agreement to a corporate Affiliate or an
               entity under its common control or an entity acquiring all or
               substantially all of its assets or equity by providing prior
               written notice to the other Party of such assignment or transfer.
               Any attempted assignment or transfer that is not permitted shall
               be void ab initio. All obligations and duties of any Party shall
               be binding on all successors in interest and assigns of such
               Party.

     22.2      Nonexclusive Remedies - Except as otherwise expressly provided in
               ---------------------
               this Agreement, each of the remedies provided under this
               Agreement is cumulative and is in addition to any remedies that
               may be available at law or in equity.

                                       35
<PAGE>

     22.3      No Third Party Beneficiaries - Except as may be specifically set
               ----------------------------
               forth in this Agreement, this Agreement does not provide and
               shall not be construed to provide third parties with any remedy,
               claim, liability, reimbursement, cause of action, or other
               privilege.

     22.4      Referenced Documents - Unless otherwise specifically provided
               --------------------
               herein, whenever any provision of this Agreement refers to a
               technical reference, technical publication, AT&T Practice, BA
               Practice, any publication of telecommunications industry
               administrative or technical standards, or any other document
               specifically incorporated into this Agreement, it will be deemed
               to be a reference to the most recent version or edition
               (including any amendments, supplements, addenda, or successors)
               of such document that is in effect, and will include the most
               recent version or edition (including any amendments, supplements,
               addenda, or successors) of each document incorporated by
               reference in such a technical reference, technical publication,
               AT&T Practice, BA Practice, or publication of industry standards.

     22.5      Governing Law - The validity of this Agreement, the construction
               -------------
               and enforcement of its terms, and the interpretation of the
               rights and duties of the Parties shall be governed by the laws of
               the Commonwealth of Massachusetts other than as to conflicts of
               laws, except insofar as federal law may control any aspect of
               this Agreement, in which case federal law shall govern such
               aspect.

     22.6      Publicity and Advertising - Neither Party shall publish or use
               -------------------------
               any advertising, sales promotions or other publicity materials
               that use the other Party's logo, trademarks or service marks
               without the prior written approval of the other Party. Neither BA
               nor AT&T may offer services to its end users or others under any
               of the brand names of the other Party or any of its parents,
               subsidiaries or affiliates, regardless of whether or not such
               brand names are registered trademarks or servicemarks, without
               the other Party's prior written authorization. Neither Party
               shall state or imply that there is any partnership or other joint
               business arrangement with the other Party, its parent,
               subsidiaries, or affiliates, for the provision of services to the
               other Party's end users or others. BA and AT&T may jointly
               develop a press release publicizing their relationship under this
               Agreement, subject to both (1) any prior non-disclosure
               agreement, and (2) mutually agreed upon language and media.
               Notwithstanding this section, AT&T is entitled to identify BA as
               the underlying carrier of the services provided hereunder.

     22.7      Amendments or Waivers - Except as otherwise provided in this
               ---------------------
               Agreement, no amendment or waiver of any provision of this
               Agreement, and no consent to any default under this Agreement,
               shall be effective unless the same is in writing and signed by
               both Parties. In addition, no course of dealing or failure of a
               Party strictly to enforce any term, right or condition of this
               Agreement shall be construed as a

                                       36
<PAGE>

               waiver of such term, right or condition. By entering into this
               Agreement neither Party waives any right granted to it pursuant
               to the Act and/or the Order, except to the extent the Act or the
               Order permits such rights to be modified or waived and such
               modification or waiver is expressly set forth herein.

     22.8      Severability - If any term, condition or provision of this
               ------------
               Agreement is held to be invalid or unenforceable for any reason,
               such invalidity or unenforceability shall not invalidate the
               entire Agreement, unless such construction would be unreasonable.
               However, the Parties agree to meet and negotiate in good faith to
               arrive at a mutually acceptable modification of the invalid or
               unenforceable provision. If the Parties are unable to agree on
               such modification within 30 days after the Agreement provision(s)
               is held to be illegal, invalid or enforceable, such failure to
               agree shall be resolved in accordance with the Dispute Resolution
               process in Section 16 of the General Terms and Conditions.

     22.9      Entire Agreement - This Agreement, which shall include the
               ----------------
               Attachments, Appendices, Exhibits and other documents referenced
               herein, including all applicable tariffs as referenced herein (as
               in effect from time to time except with respect to those
               provisions in this Agreement in which it is expressly provided
               otherwise), constitutes the entire Agreement between the Parties
               concerning the subject matter hereof and supersedes any prior
               agreements, representations, statements, negotiations,
               understandings, proposals or undertakings, oral or written, with
               respect to the subject matter expressly set forth herein. Neither
               Party shall be bound by any terms additional to or different from
               those in this Agreement that may appear subsequently in the other
               Party's form documents, purchase orders, quotations,
               acknowledgments, invoices or other communications.

     22.10     Survival of Obligations - Any liabilities or obligations of a
               -----------------------
               Party for acts or omissions prior to the cancellation or
               termination of this Agreement; any obligation of a Party under
               the provisions regarding indemnification, Proprietary
               Information, limitations on liability, and any other provisions
               of this Agreement which, by their terms, are contemplated to
               survive (or to be performed after) termination of this Agreement,
               shall survive expiration or termination hereof.

     22.11     Executed in Counterparts - This Agreement may be executed in any
               ------------------------
               number of counterparts, each of which shall be deemed an
               original, but such counterparts shall together constitute one and
               the same instrument.

     22.12     Headings of No Force or Effect - The headings of Articles and
               ------------------------------
               Sections of this Agreement are for convenience of reference only,
               and shall in no way define, modify or restrict the meaning or
               interpretation of the terms or provisions of this Agreement.

                                       37
<PAGE>

     22.13     Joint Work Product - This Agreement is the joint work product of
               ------------------
               the Parties and their respective counsel and shall be fairly
               interpreted in accordance with its terms and, in the event of any
               ambiguities, no inferences shall be drawn against either Party.

     22.14     Nonexclusive Dealings - This Agreement does not prevent either
               ---------------------
               Party from providing or purchasing services to or from any other
               person nor, except as provided in Section 5 of the General Terms
               and Conditions and Exhibit A (Bona Fide Request Process) of Part
               II hereof, does it obligate either Party to provide or purchase
               any services not specifically provided herein.

     22.15     No License - No license under patents, copyrights or any other
               ----------
               intellectual property right (other than the limited license to
               use consistent with the terms, conditions and restrictions of
               this Agreement) is granted by either Party or shall be implied or
               arise by estoppel with respect to any transactions contemplated
               under this Agreement.

     22.16     Dialing Parity - In addition to the parity requirements set forth
               --------------
               in Section E of Part I, the Parties shall provide dialing parity
               to each other as required under Section 251(b)(3) of the Act,
               except as may be limited by Section 271 (e)(2)(B) of the Act.

     22.17     Disclaimer of Warranties - Upon the Department's ruling that it
               ------------------------
               has substantially completed the establishment of performance
               standards and remedies in the Consolidated Arbitrations, D.P.U.
               96-73/74, 96-75, 96-80/81, 96-83 and 96-94, the following
               disclaimer shall take effect: EXCEPT AS EXPRESSLY PROVIDED UNDER
               THIS AGREEMENT, NO PARTY MAKES OR RECEIVES ANY WARRANTY, EXPRESS
               OR IMPLIED, WITH RESPECT TO THE SERVICES, FUNCTIONS AND PRODUCTS
               IT PROVIDES UNDER OR CONTEMPLATED BY THIS AGREEMENT AND THE
               PARTIES DISCLAIM THE IMPLIED WARRANTIES OF MERCHANTABILITY OR OF
               FITNESS FOR A PARTICULAR PURPOSE.

                                       38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]