Gazette No.: 14/2001 Published on 6 Apr 2001

FIXED TELECOMMUNICATION NETWORK SERVICES LICENCE
TELECOMMUNICATION ORDINANCE (Chapter 106)

In accordance with General Condition 20 of the Fixed Telecommunication Network Services Licence, Reach Networks Hong Kong Limited (formerly PCCW-HKT International Limited) hereby publishes the revised tariffs and the terms and conditions under which it will provide the following telecommunication services with effect from 19th March 2001.

Part III - International        Intelpak

Clause 2.3(a) of Intelpak tariffs is deleted and the following substituted -
"
2.3 Volume Discounts
(a) The Customer is entitled to a monthly volume discount off the Data Packet Usage Charge calculated in accordance with this paragraph 2.3 ("Volume Discount").

Kilosegments (Thousand segment) of outgoing and incoming Data Packets per month*	Percentage Volume Discount
total traffic is less than or equal to 10,000	15%
total traffic is between 10,001 and 15,000	20%
total traffic is between 15,001 and 20,000	25%
total traffic more than 20,001	30%

* Note: for the avoidance of doubt only one percentage volume discount is applied in any one month and it is applied in relation to the total volume of outgoing and incoming Data Packets for that month.

Part VII - International         International Private Leased Circuit

Appendix IPLC_Px.I.H4

GUIDANCE NOTES FOR IPLC DDS WHOLESALE DISCOUNT PLAN

1. General Rules

All full time use of the Digital Data Service (DDS) duplex circuits at speed 56Kbps and above will qualify for the IPLC DDS Wholesale Discount Plan.

The customer may choose and apply this IPLC DDS Wholesale Discount Plan for his IPLC DDS network with circuit speed at 56Kbps and above. Customer may have the option to switch from other IPLC DDS Discount Plan to this IPLC DDS Discount Plan provided that the Minimum Commitment Period is unchanged as a result of the plan change and the total bandwidth switched to this plan in relation to the Customer will grow by 40% within 6 months or a period of time agreed between the Company and the Customer. The cutover date to this IPLC DDS Wholesale Discount Plan will be on the 1st day of the following month.

All DDS Discount Plan's incentive will be applied to the Monthly Basic Rentals. The calculation of discounts is on a discount-on-discount basis. i.e. Monthly Basic Rental x {1 - Discount A} x {1 - Discount B} …. = Net Discounted Amount.

Unless otherwise agreed between the Company and the Customer, the Minimum Commitment Period of full time DDS circuits at speed 56Kbps and above is 3 months.

2. Wholesale Discount Plan

2.1 This discount plan applies to full time DDS duplex circuits at speeds 56Kbps and above. All circuits which will be subject to this discount plan must have at least one year Minimum Commitment Period with the Company in order to qualify for the Wholesale Discount Plan.

2.2 The Volume Discount under this Wholesale Discount Plan is calculated on two factors: (a) the number of circuits and (b) the total bandwidth of the Customer's full time IPLC DDS Network.

2.3 In calculating the number of circuits under the Volume Discount, any circuit at speed above 56Kbps will be counted as one circuit.

3. Additional Incentives

3.1 Term Discount

3.1.1 In the event that the Customer wishes, at the commencement of the Customer's subscription to the Wholesale Discount Plan, to enter into a Minimum Commitment Period longer than one year, additional discount will be applied. The term Discount and the Progression Discount are mutually exclusive.

3.1.2 Cancellation Charge

In the event that the Customer cancels the Service before the expiry of the Minimum Commitment Period, the Customer shall be liable for payment of the cancellation charges as follows:

MCP of 1 year 25% of the IPLC Monthly Basic Rental payable for the remaining unexpired term.
MCP of 2 years and above 15% of the IPLC Monthly Basic Rental payable for remaining unexpired term.

3.2 Progression Discount

3.2.1 All circuits eligible for the Progression Discount must have completed at least one year Minimum Commitment Period with the Company, from when the Customer subscribed to this Wholesale Discount plan, in order to qualify the Progression Discount.

3.3 Project Discount

3.3.1 The Project Discount will only be offered to the Customer who has committed to and placed firm orders for a bundle of circuits ("Project Commitment Size") to be established by phases within six months of the order placement or some other period as agreed between the Company and the Customer.

3.3.2 The corresponding discount level (Volume Discount) in respect of the Project Commitment Size of the Customer's network will be applied as soon as the first circuit has been provisioned and is in service.

3.3.3 In the event that the Customer fails to meet the Project Commitment Size by the end of six months or some other period as agreed between the Company and the Customer, the Customer shall be liable to a cancellation charge based on the following formula:

Billed Amount x Granted Discount Percentage - Achievable Discount Percentage

1 - Granted Discount Percentage

where: Billed Amount is the total amount billed by the end of six months or some other period as agreed between the Company and the Customer.

Granted Discount Percentage is based on the Project Commitment Size

Achievable Discount Percentage is based on the actual network project size by the end of six months or some other period as agreed between the Company and the Customer.

3.3.4 The offer of a Project Discount will be subject to the availability of Capacity.

3.4 Bulk Order Discount

3.4.1 An additional 3% discount per 3 circuit orders placed in one batch will be applied to the subject circuits up to a maximum additional discount of 9% provided that (a) total bandwidth for the application shall not be less than 6Mbps and (b) all circuits shall be established within 6 months of the order placement or some other period as agreed between the Company and the Customer.

3.4.2 Bulk Order Discount in respect of the order volume will be applied as soon as the first circuit has been provisioned and is in service.

In the event that Customer cancels any circuit order in the batch before all circuits establishment, the Bulk Order Discount for all circuits in the batch shall be cancelled and the Customer shall be liable to return the applicable discount amount to the Company.

3.5 Wideband Circuit Discount

3.5.1 An additional discount will be granted to wideband circuits at speed over E1.

3.5.2 Monthly charges for wideband circuits will be calculated in step of E1 bearer, e.g. monthly rental for one T3 equal to monthly rental for 21 x E1.

3.6 Upgrade Discount

3.6.1 To qualify for the Upgrade Discount, each circuit subject to the Upgrade Discount must have been in service for at least three months.

3.7 Bandwidth Growth Incentive Scheme

3.7.1 The Bandwidth Growth Incentive Scheme applies to full time IPLCs at speeds of 56Kbps and above. Customer can join this scheme to enjoy a maximum additional credit of up to 15%.

N.B. For scheme detail, refer to Appendix IPLC_Px.I.H.3

4. Up Front Payment

4.1 In the event that the customer wishes to pay up-front, a discount factor will be applied as agreed between the Company and the Customer. The discount factor is capped by the following formula:

Maximum UpFront Payment Discount Per Annum = 12-Month Exchange Fund Bill Rate + 10%

5. Conditions of Service

This discount plan is made available by the Company to the Customer subject to the Company's General Conditions of Service and the Special Conditions of International Private Lease Circuit Service.

Appendix IPLC_Px.I.H.3

International Private Leased Circuit (IPLC)
Bandwidth Growth Incentive Scheme

1. Customer may join the Bandwidth Growth Incentive Scheme to enjoy a credit of up to 15%.

2. The Bandwidth Growth Incentive Scheme applies to full time IPLC DDS duplex circuits at speed 56Kbps and above. The Incentive Scheme will be in the form of credit percentage calculated as below:

Growth Level	Committed Net Growth in Network Bandwidth	Credit Percentage
Level 1	50%	8%
Level 2	80%	10%
Level 3	100%	12%
Level 4	150%	15%

 

 

 

 

where

Committed net growth in network bandwidth is measured on the Customer's entire IPLC DDS network at circuit speed 56Kbps and above within 6 months or a period of time agreed between the Company and the Customer (committed bandwidth growth period).

 

3. Credit

3.1 In the event that the Customer fulfills the committed growth level within the committed bandwidth growth period, the Customer shall be entitled to a credit amount effected in 6 consecutive months. Each month's credit amount is the minimum of

(a) total billed amount during the committed bandwidth growth period multiply by the credit percentage x (1/6) and
(b) the Service Charges of the corresponding month.

4. Bandwidth Growth Incentive Criteria

4.1 To qualify for the Incentive Scheme, the following criteria may have to be fulfilled to the Company's satisfaction:

(a) The Customer must use Hong Kong as the main regional telecommunication hub.
(b) The Customer must commit to the Company on its IPLC DDS bandwidth growth level.
(c) The total current bandwidth usage of the Customer's entire IPLC DDS network must not be less than 2Mbps.

5. Scheme Termination

5.1 The Incentive Scheme shall be terminated in any of the following event :

(a) The Customer fails to meet the committed growth in its network bandwidth by the end of the committed bandwidth growth period.
(b) The total bandwidth of the Customer's entire IPLC DDS network drops below the level at the time joining the Incentive Scheme.

Part VIII - International        Telex

1. Existing tariffs and special conditions of the service are replaced with the following -
"
1. Service Description
1.1 Telex Service

The Telex Service is a telegraph switching service provided by the Company , for on-line text communication at 50 baud in ITU-T International Telegraph Alphabet No. 2 (ITA2) character codes. During a telex transmission, a copy of the message is produced simultaneously on both the sending and receiving telex terminal equipment.

Delivery time of service : 5 working days

1.2 Telex300 Service

Telex300 is an enhanced telex service which enables telex messages to be sent and received at 300 baud which is equivalent to 30 characters per second and which is 4.5 times faster than the standard telex service. This service will also support transmission in upper and lower case characters when communicating with compatible telex terminal equipment. When a Telex300 customer sends or receives a telex message to or from a customer of a standard telex service the telex message will be stored and then delivered to the called telex number.

1.3 Instore Service

Instore is an enhanced telex service for Customers of the Telex Service which stores incoming messages being sent to the Customer's telex machine which is unavailable and provides automatic delivery of the stored messages to the Customer's telex machine when it is available again.

1.4 Syndicate Service

Syndicate is an enhanced telex service which enables Customers of theTelex Service to broadcast telex messages with an optional personalised header to pre-registered telex addresses.

1.5 Emergency Telex Re-direction Service

The emergency telex re-direction service is a disaster recovery service which enables a Customer of the Telex Service to request the Company to redirect the Telex Service to a back-up line when there is an emergency at the Customer's premises. If a request is accepted by the Company the Telex Service will be redirected until the Customer requests a redirection back to the original telex line.

1.6 Volume Discount

The customer is entitled to have volume discount in accordance to the below table.

Volume Discount Table

Total money spending per month	Volume discount
Over HK$2,000,000	25%
HK$1,000,000-HK$2,000,000	15%

1.7 Statistical Report

The following statistical report may provide to the customers on request.

(a) Daily or Monthly On-line Statistics
(b) Daily Outgoing Telex Calls
(c) Daily Channel Occupancy
(d) Daily or Monthly Received Error Messages
(e) Daily Message Trace Report
(f) Monthly Message Analysis Statistics

1.8 Program Changes

(a) Change of Address Codes
(b) Change of Telex Addresses
(c) Change of Answerback
(d) Change of Fax Numbers
(e) Change of Circuit Options
(f) Change of Channel Parameters

2. Charges

2.1 Telex Service

(a)	Telex Port Charge	$ 50 per month
(b)	Additional Service Charges
	(i) Reconnection	$ 100 per request
	(ii) Assignment	$ 275 per assignment
	(iii) Answerback Change	$ 100 per request
	(iv) Service Upgrade to Telex300	$ 250 per upgrade
(c)	Usage Charges
	(i) Local calls	$ 0.5 per minute (See Note 1)
	(ii) Local calls to Telex300 Customers	$ 1.5 per minute (See Note 1)
	(iii) International calls	(See Note 1 and Appendix TLX_Px.I.A)

2.2 Telex300 Service

(a)	Telex Port Charge	$ 50 per month
(b)	Additional Service Charges
	(i) Reconnection	$ 100 per request
	(ii) Assignment	$ 275 per assignment
	(iii) Answerback Change	$ 100 per request
	(iv) Service Upgrade to Telex300	$ 250 per upgrade
(c)	Usage Charges	See 2.1(c) above

2.3 Instore Service

(a)

Service Subscription

$30 per month

2.4 Syndicate Service

(a)	Service Subscription	Nil
(b)	Usage Charges	See 2.1(c) above and Note 2

2.5 Emergency Telex Re-direction Service

(a)	Service Subscription	Nil
(b)	Usage Charges	See 2.1(c) above

2.6 Statistical Report

(a)	Daily or Monthly On-line Statistics	$500 per month
(b)	Daily Outgoing Telex Calls	Once-off Activation Charge of $2,000 $500 per month
(c)	Daily Channel Occupancy	$500 per month
(d)	Daily or Monthly Received Error Messages	$500 per month
(e)	Daily Message Trace Report	$500 per month
(f)	Monthly Message Analysis Statistics	Once-off Activation Charge of $3,600 $8 per 100 messages with a minimum charge of $1,000 per month

2.7 Program Changes

(a)	Change of Address Codes	Company's standard labour rate applies. Minimum charge is 2 hours.
(b)	Change of Telex Addresses
(c)	Change of Answerback
(d)	Change of Fax Numbers
(e)	Change of Circuit Options
(f)	Change of Channel Parameters

3. Conditions of Service

Please refer to Appendix I.A, Appendix TLX_SC.I.A and Appendix TLX_SC.I.B.

Notes:

Appendix TLX_SC.I.A

Telex Service
Special Conditions

1. GENERAL TERMS AND CONDITIONS

1.1 The Telex Service is made available by the Company to the Customer subject to the Company's General Conditions of Service and these Special Conditions.

1.2 If any term of these Special Conditions is inconsistent with the General Conditions of Service these Special Conditions will prevail.

1.3 Capitalised terms in these Special Conditions have the meanings given to them in clause 7 or the General Conditions of Service (as applicable).

2. SERVICE

2.1 The Service will be available during the Operating Hours.

2.2 The Customer undertakes not to use the Service to conveyance information for third parties either for gain or otherwise and any such unauthorised use of the Service shall constitute an Unauthorised Activity and a material breach for the purposes of the General Conditions.

2.3 If the Customer uses the Service to access any other service or facility provided by the Company the Customer may be required to enter into a further agreement with the Company regarding the provision of such service or facility.

3. RELOCATION AND ANSWERBACK CHANGES

3.1 The Company will at the request of the Customer change the answerback assigned to the Service and the Customer must pay the Company the Answerback Change Charge when the Customer makes the request. If the answerback is changed at the request of the Company the Customer do not have to pay the Answerback Change Charge.

3.2 The Company will comply with a request under clause 3.1 as soon as practicable. The Company is not liable for any Loss that may be suffered by any person as a result of the Company failing to comply with such a request or as a result of any delay in complying with such a request.

4. THE APPARATUS

4.1 The Customer must not connect any Apparatus which is a multi-line or switching equipment to the Service which has not received prior Permission-to-Connect (PTC) from the Company for use in the Service. Such Apparatus having been evaluated and approved of connecting to the Service must not be modified or substituted without the prior written permission of the Company.

4.2 The Company may disconnect or require the Customer to disconnect the Apparatus from the Service if any fault in, condition of or misuse of the Apparatus is in the Company's opinion likely to cause any damage to or interference with the Service.

5. REFUNDS

5.1 If the Company fails to provide, delays provision of or interrupts or restricts provision of the Service due to the negligence or wilful misconduct of the Company, its servants or agents, and such failure, interruption or restriction or fault continues uninterrupted for more than two business days the Company will refund to the Customer a pro-rata amount of the monthly Charges. Any failure, interruption, restriction or fault that arises out of Force Majeure will not qualify for a refund.

5.2 If a failure of the Service results in an unsuccessful international call, the Company may in its absolute discretion refund the Usage Charge for that international call in accordance with the refund procedure set out in Appendix TLX_SC.I.B. No claims for refunds can be made for telex calls made more than two months preceding the date of the claim or for calls of less than 25 seconds duration.

6. COMPANY NAME CHANGE

If the Customer is a company and the Service number is registered under the business name or the company name and the company name or the business name is changed, the Company may in its absolute discretion on the production of a Certificate of Incorporation on Change of Name or an equivalent Business Registration Certificate change the registered name of the Service number to the new name on payment of the Assignment Charge. If the Customer is unable to produce the relevant certificate of name change to the Company's satisfaction, the Customer may need to terminate the Service and apply for the Service under the new name.

7. DEFINITIONS

Unless the context otherwise requires, words defined in the General Conditions have the same meaning when use in these Special Conditions, and in these Special Conditions:

"Apparatus" means the telex terminal apparatus supplied by the Customer.

"Operating Hours" means the hours during which the Service operate as determined by the Company from time to time.

Appendix TLX_SC.I.B

Telex Service
Refund Of Usage Charges

1. DEFINITION

For the purposes of claiming a refund, an unsuccessful call is defined as follows:-
(a) Cut-off during transmission other than by the calling or called parties or
(b) Incomplete - unable to obtain the Answerback at the end of the call or
(c) Repetition is requested by the receiving customer.

2. PROCEDURE

2.1 A copy of all unsuccessful calls together with a copy of any subsequently completed call should be sent as soon as possible, preferably on the next business day following the conclusion of the unsuccessful call, to the Telex Control Office at the Registered Office of the Company so that the charge for the unsuccessful call can be erased from the billing record. The copies must in all cases, show the Customer's telex number plus 'date/time PTS' for tracing purposes.

2.2 All claims relating to telex calls made during a month should be received in the Telex Control Office before noon on the third business day of the following month. If, however, a claim is made after noon on the third business day relating to a call made in the previous month, it should be accompanied by the relevant account statement on which the call in question should be underlined.
"

2. The following destinations are deleted from Telex Service rates from Hong Kong (By Destination) table in Appendix TLX_Px.I.A -
"

Destination	Charge per minute (HK$)
Ascension	14.00
Cook Islands	12.00
Fiji	12.00
New Zealand	12.00
Tonga	12.00
Western Samoa	12.00
Zaire	14.00

3. The following destinations are added to the Telex Service rates from Hong Kong (By Destination) table in Appendix TLX Px.I.A -
"

Destination	Charge per minute (HK$)
Azerbaijan	12.00
Congo, Democratic Republic of the (formerly Zaire)	14.00

"

and

4. All Telex Discount Plans in Appendix TLX_Px.II.A are deleted.

Part IX - International       Telegram

1. Clauses 1.3 (FaxGram Plus), 2.1(f) (Chinese Four Figure Encoding) and 2.3 (FaxGram Plus) of Telegram tariffs are deleted;

2. The following clause 1.4 is added in Telegram tariffs
"
1.4 The Customer is entitled to have volume discount in accordance to the below table.

Volume discount table
Total money spending per month	Discount
Over HK$150,000	20%
HK$100,000 - HK$150,000	10%

and

3. Clause 3.1 of Special Conditions of Telegram Service is deleted and the following substituted -
"
3.1 A Customer may provide an Application to the Company by hand at a service centre, telex, Morse Radiotelegraphy or over a leased circuit.".
"

Part X - International       Wholesale Virtual Private Network Services

1. Service Description

1.1 The Wholesale Virtual Private Network Service (VPN) is an end-to-end service designed for use by VPN Licensees in Hong Kong as a service platform for provisioning of VPN services to their customers.

2. Charges

2.1 Definitions
Unless the context otherwise requires, words defined in the General Conditions and the Special Conditions have the same meaning when used in this part 2:

(a) 12 month period means the 12 month period commencing on the Service Commencement Date and each 12 month period commencing on the anniversary of the Service Commencement Date.

(b) Actual Volume means the sum of the Call Duration of each VPN Call for the preceding 12 month period.

(c) Additional Usage Charge means in relation to the preceding 12 month period or such shorter period if the Agreement is terminated within a 12 month period, the Standard Usage Charge for that period less the sum of the monthly usage charges for that period.

(d) Call Duration of a call means the duration of that call measured from the time of receipt of an answer back signal at the Company Interface until call release at the Company Interface and rounded up to the nearest 6-second interval.

(e) Monthly Usage Charge is equal to the sum of the Call Duration of each Outgoing VPN Call in the relevant month multiplied by the Rates.

2.2 Wholesale VPN Usage Charges

Call Charges (HK$ per minute with 6 seconds increment)
On-net and Off-net – Voice
Destinations : Category A
	Level 0 (standard)	Level 1	Level 2	Level 3
Australia	1.13	1.05	1.04	1.03
Austria	6.29	5.85	5.79	5.72
Belgium	1.77	1.65	1.63	1.61
Canada	0.75	0.70	0.69	0.68
China-Shenzhen	1.91	1.66	1.62	1.59
China-Guangdong	3.13	2.72	2.66	2.60
China – Rest	4.55	3.96	3.87	3.78
Denmark	1.77	1.65	1.63	1.61
Finland	2.20	2.05	2.02	2.00
France	1.44	1.34	1.32	1.31
Germany	1.44	1.34	1.32	1.31
Ireland	6.10	5.67	5.61	5.55
Italy	1.44	1.34	1.32	1.31
Japan	1.50	1.40	1.38	1.37
Korea (South)	1.65	1.53	1.52	1.50
Luxembourg	6.29	5.85	5.79	5.72
Netherlands	1.77	1.65	1.63	1.61
New Zealand	1.83	1.70	1.68	1.67
Norway	1.77	1.65	1.63	1.61
Philippines	3.88	3.38	3.30	3.22
Singapore	1.95	1.81	1.79	1.77
Spain	1.77	1.65	1.63	1.61
Sweden	1.77	1.65	1.63	1.61
Switzerland	1.77	1.65	1.63	1.61
Taiwan	1.95	1.70	1.66	1.62
UK	1.14	1.06	1.05	1.04
USA	0.75	0.70	0.69	0.68

Call Charges (HK$ per minute with 6 seconds increment)
On-net and Off-net – Voice
Destinations : Category B
	Level 0 (standard)	Level 1	Level 2	Level 3
Argentina	9.52	8.28	8.09	7.90
Bangladesh	9.64	8.39	8.19	8.00
India	5.60	4.87	4.76	4.65
Indonesia	5.19	4.52	4.41	4.31
Israel	5.18	4.51	4.40	4.30
Malaysia	3.40	2.96	2.89	2.82
Pakistan	8.80	7.66	7.48	7.30
Russia	9.52	8.28	8.09	7.90
South Africa	4.60	4.00	3.91	3.82
Sri Lanka	7.00	6.09	5.95	5.81
Thailand	4.00	3.48	3.40	3.32
UAE	5.99	5.21	5.09	4.97

Usage charge rates is applied based on total volume of traffic for Cat. A & B destinations :

Monthly Minutes	Usage Charge
0 – 300,000	Level 0 (standard)
300,001 – 1,000,000	Level 1
1,000,001 – 1,500,000	Level 2
> 1,500,000	Level 3

Note:

1. The rates above apply to Outgoing VPN Calls only.
2. The Customer must pay the Company the Monthly Usage Charge monthly in arrears.
3. If in any 12 month period the Actual Volume is less than 1 million minutes the Customer must pay the Company the Additional Usage Charge within 30 ays of notice from the Company of the amount of the Additional Usage Charge.
4. If the Agreement is terminated before the expiration of any 12 month period and the sum of the Call Duration of each VPN Call for the months since the end of the previous 12 month period is less than 1 million minutes, the Customer must pay the Company the Additional Usage Charge for that period on the date of termination of the Agreement.

2.3 Service Charges

(a) Service Set Up Charges
The Customer must pay the Company a Service Set Up Charge $1,000 on each new member Service Commencement Date. For other non-standard work, the job will be performed as a project basis and the charges will be determined based on the Company's one-off job formula tariff.

(b) Reconfiguration Charges
The Customer must pay the Company a Reconfiguration Charge of HK$ 500 for each Dial Plan change requested by the Customer. For other types of reconfiguration work, the job will be performed on a project basis and the charges will be determined based on the Company's one-off job formula tariff and is accepted by the customer.

3. Conditions of Service

Please refer to Appendix I.A and Appendix VPNW_SC.I.A

Appendix VPNW_SC.I.A
Wholesale Virtual Private Network Service
Special Condition

1. GENERAL TERMS AND CONDITIONS

1.1 The Service is a wholesale virtual private network service made available by the Company to the Customer subject to the Company's General Conditions of Service and these Special Conditions.

1.2 If any term of these Special Conditions is inconsistent with the General Conditions of Service these Special Conditions will prevail.

1.3 Capitalised terms in these Special Conditions have the meanings given to them in clause 6 or the General Conditions of the Service (as applicable).

2. DELIVERY OF VPN CALLS

2.1 In respect of each Outgoing VPN Call:

(a) the Customer must carry the Outgoing VPN Call from the Calling Party to the Company Interface; and
(b) the Company must carry that Outgoing VPN Call to the relevant Foreign Interface for onwards delivery to the Called Party outside Hong Kong by a Foreign Operator.

2.1 In respect of each Incoming VPN Call:

(a) the Company must carry the Incoming VPN Call from the relevant Foreign Interface to the Company Interface; and
(b) the Customer must carry the Incoming VPN Call from the Company Interface to the Called Party.

3. USE OF THE SERVICE

3.1 The Customer must hold an appropriate VPN licence and comply with VPN regulations.

3.2 If the Customer delivers to the Company at the Company Interface any call that is in the Company's opinion not an Outgoing VPN Call, the Company may in its absolute discretion arrange for the routing of that call to another appropriate service and the Customer must pay the Company the applicable tariff for that service for that call.

3.3 The Company may elect not to carry:

(a) incoming VPN Calls used to provide outbound calling services initiated in Hong Kong;
(b) calls that are not VPN Calls; and
(c) any calls that otherwise involve a breach of this Agreement.

3.4 The obligations in paragraph 3 of these Special Conditions are material obligations for the purposes of the General Conditions and any breach by the Customer of this paragraph 3 will amount to an Unauthorised Activity for the purpose of the General Conditions .

3.5 If the Company suspects that Unauthorised Activities have or are occurring in relation to the Service, in addition to the Company's right to suspend or terminate the Service the Company may restrict the Dial Plan and place other restrictions on the Service as it considers necessary.

4. DIAL PLAN

4.1 The Customer must provide the Company with the following information in relation to each Member of each Organisation that is a Reseller Customer to enable the Company to compile and maintain the Dial Plan for each Organisation or Corporate Group

(a) the country in which the Registered Site is located;

(b) the IPSTN Number and the VPN Number ;

(c) whether or not the Registered Site is connected to the Customer's VPN platform via Switched Access or Dedicated Access; and

(d) such other information as the Company may reasonably require from time to time to provide the Service or ensure compliance with this Agreement.

5. OPERATIONS MANUAL

5.1 The Customer must comply with the Operations Manual which will include the following:

(a) the procedures for the Customer to forecast its requirement for the Service and to order the Service;

(b) descriptions, technical specifications for the Service and interfaces between the networks of the Company and the Customer:

(c) fault reporting;

(d) maintenance procedures;

(e) safety procedures; and

(f) other matters agreed between the Company and the Customer from time to time.

6. DEFINITIONS

Unless the context otherwise requires, words defined in the General Conditions have the same meaning when use in these Special Conditions, and in these Special Conditions.

(a) Authorised Destination means a destination outside Hong Kong that the Company has approved as one to and from which the Service is provided, as notified by the Company from time to time.

(b) Called Number means the VPN Number or IPSTN Number of the Called Party registered in the Dial Plan and dialed by the Calling Party.

(c) Called Party means the customer equipment:

(1) to which an VPN Call is conveyed for final termination (which for the avoidance of doubt excludes any interim device used in relation to the routing or establishment of the call); and

(2) that answers the call and communicates with the Calling Party.

(d) Calling Party means the customer equipment:

(1) from which an VPN Call originates for transmission to a Called Party (which for the avoidance of doubt excludes any device used for call re-origination, establishment or routing); and

(2) that initially dials the Called Number and communicates with the Called Party.

(e) CLI means the information identifying the PSTN number of the Reseller Customer line from which a call originates that is generated or verified by the telecommunications network to which the Reseller Customer line is directly connected.

(f) Company Interface means the device used by the Company to receive and deliver VPN Calls under this Agreement.

(g) Dedicated Access in relation to an VPN Call means the carriage of that call over a Direct Access Line.

(h) Dial Plan means in relation to each Corporate Group or Organisation details of the Registered Site and corresponding VPN Number and IPSTN Number and other information detailed in paragraph 4.1.

(i) Direct Access Line means:

(1) in relation to a Registered Site in Hong Kong, a direct leased line of dedicated unswitched transmission capacity used solely to receive and deliver VPN Calls between that site and the Customer's VPN switch platform or the Company Interface if the Customer does not operate an VPN switch platform; and

(2) in relation to a Registered Site in a foreign country, a direct leased line of dedicated unswitched transmission capacity used to receive and deliver VPN Calls between that site and the relevant Foreign Operator's VPN switch; and

(3) expressly excludes access through the public switched telephone network.

(j) Foreign Interface means the agreed demarcation point between the Network and a Foreign Network for VPN Calls.

(k) Foreign Network means a telecommunications network outside Hong Kong that carries communications to and from a Hong Kong telecommunications network.

(l) Foreign Operator means a person operating a foreign network:

(1) to which the Company delivers Outgoing VPN Calls; and

(2) from whom the Company receives Incoming VPN Calls.

(m) Incoming VPN Call means an international virtual private network call that:

(1) complies with the VPN Criteria;

(2) originates from a Calling Party located at a Registered Site in an Authorised Destination and terminates to a Called Party located at a Registered Site in Hong Kong that is a Reseller Customer;

(3) is addressed by the Calling Party to a VPN Number of the Called Party and is received by the Company with that addressing information; and

(4) is delivered to the Company by a Foreign Operator for onwards delivery to the Customer at the Company Interface for termination to a Called Party that is a Reseller Customer.

(n) IPSTN Number means its international public switched telephone network number.

(o) VPN Call means an Incoming VPN Call or Outgoing VPN Call.

(p) VPN Criteria in relation to a call means that the call:

(1) is limited to the carriage of fax, voice or data over the voiceband;

(2) is between a Calling Party and a Called Party that are the Members of the same Organisation;

(3) complies with the VPN Regulations.

(q) VPN Licence means the Customer's VPN Licence granted to it under the Telecommunication Ordinance.

(r) VPN Regulations means the terms of the VPN Licence and any guidelines issued by the Telecommunications Authority from time to time in relation to the operation of international virtual private network services.

(s) VPN Number means a 3-7 digit number that is allocated by the Customer to each Member.

(t) Operations Manual means an operations manual in relation to the Service issued by the Company from time to time.

(u) Organisation means a bona fide group of persons that:

(1) is engaged in a Common Purpose and which has the specific purpose of pursuing such a Common Purpose as stated in the Organisation's onstituent documents; and

(2) qualifies as an Organisation under the VPN Regulations,

(v) Outgoing VPN Call means an international virtual private network call of a Reseller Customer that:

(1) complies with the VPN Criteria; and

(2) originates from a Calling Party located within Hong Kong at a Registered Site and terminates to a Called Party at a Registered Site located in an Authorised Destination.

(w) Registered Site means for each Member a site:

(1) the telephone number which is registered in the Dial Plan for that Member as a telephone number of the Organisation;

(2) that is the final origination or termination point for the VPN Call.

(x) Reseller Customer means a person or company which contracts with the Customer for supply of a Customer Service.

(y) Service means delivery of VPN Calls in accordance with this Agreement.

(z) Switched Access means any method of delivering VPN calls to or from a Member other than through Dedicated Access (including through the public switched telephone network).

(aa) Translate includes alter or modify or delete.

Part XII - International       International - Occasional TV

1. The following layer charge is added to clause 2.1 (a) Usage Charges - Ground Segment Only of International Television Occasional Service tariff;

"

	SETUP CHARGE	SINGLE-HOP	DOUBLE-HOP
	Per Call (HK$)	Per Minute(excluding space segment charge) (HK$)	No signal termination in Hong Kong Per Minute (excluding space segment charge) (HK$)	With signal termination in Hong KongPer Minute (excluding space segment charge) (HK$)
Contracted Rate Minimum Usage> 50,000 minutes	780	25	30	38

"

2. Clause 2.2(a) is deleted and the following substituted -
"
2.2 VIA MICROWAVE LINK

Usage Charge

Non-Contracted Rate	CHARGE (HK$)
Initial 10 minutes Each additional minute	1,750 112

Contracted Rate (>3,000 minutes)	CHARGE (HK$)
Initial 10 minutes Each additional minute	1,400 90

Note:

1. There is no unused minute charge.
2. Non-contracted users will be charged at Non-Contracted Rate.
3. Contracted users need to contract in advance for a minimum usage of 3,000 minutes during a specified 12 month period. Usage Charges will then be billed according to the respective Contracted Rate. If the minimum cannot be reached at the end of the 12 month period, customers will pay for the shortfall of the unused minutes at Non-Contracted Rate.
4. The minimum charging unit for the Usage Charges is 10 minutes thereafter the Usage Charges will be calculated in 1 minute increments.
5. The charges include Hong Kong end and distant end plus a one-way associated audio circuit of 15kHz in the normal programme channel (TV Band).
6. Charges include service origin and termination at the Company's International Gateway. Local terrestrial charges to and from customer premises are excluded.

"
and

3. Clauses 2.3 and 2.4 of International Television Occasional Service tariff are deleted.

Internet Gateway Service

1. Clause B. Particulars of Charges of Internet Gateway Service is deleted and the following substituted -
"
B. Particulars of Charges

The price of the Internet Gateway Service will be revised with effective from 19 March 2001 with the details as follows:

Discount Plan A : 35% off the Regular Plan will be offered for subscription with 1-year service term.
Discount Plan B : 45% off the Regular Plan will be offered for subscription over 155Mbps with 2-year service term.
Notes: -

(1) The charge includes an access port (IP-Port) in the company's network operation centre

(2) The charge is a flat rate pricing, NOT subject to port utilization

(3) Minimum subscription period of Regular Plan is 6 months

(4) The Company will issue an invoice to customers on a monthly basis in advance.
"
and

2. The following clauses 9.2 and 9.3 are added to Special Conditions of Internet Gateway Services -
"
9.2 The termination of this Agreement shall be without prejudice to any pre-existing rights or obligations of either party including the payment of all monthly service charges by the Customer up to the date of termination.

9.3 If this Agreement is terminated by the Customer before the expiry of the Commitment Period (a term period equal or longer than the minimum commitment period as may be agreed by Customer and the Company), the Customer shall pay cancellation charges to the Company calculated at the monthly service charge (at the then prevailing tariff) for the Service payable from the date of early termination to the date of the expiry of the Commitment Period. The payment of the cancellation charges is without prejudice to any other rights and remedies that the Company has against the Customer by reason of the early termination.
"

International Switched Digital Service - Wholesale

Clauses 1 and 2 of the International Switched Digital Service are deleted and the following substituted -
"
1. Service Description
The International Switched Digital Service (ISDS) is provided by the Company to FTNS licensees to enable the End-Customers to make international switched digital calls using transmission capacity of 64kbps from Hong Kong to the destinations listed in the Table 1 below.
2. Charges
2.1 The charges for each destination are set out in Table 1 below.
2.2 The minimum charging unit is 6 seconds and thereafter the charges will be calculated in 6-second increments.

Table 1 International Switched Digital Service (ISDS) - 64kbps ISDS Rates Table

Countries	Normal Rate (Note 1)		Volume Rate (Note 1)
	Peak and Off-Peak First Minute Per minute (HK$) (Note 2)	Off-Peak Additional Minute Per minute (HK$) (Note 2)	Peak and Off-Peak First Minute Per minute (HK$) (Note 2)	Off-Peak Additional Minute Per minute (HK$) (Note 2)
Australia	9.80	9.15	7.70	7.00
Austria	11.04	10.39	8.75	8.19
Bahrain	12.37	10.78	9.80	8.40
Belgium	16.88	15.58	13.30	11.90
Bermuda	14.75	13.45	11.20	9.80
Canada	7.03	5.90	5.60	4.69
Cayman Island	12.39	9.73	9.80	7.70
Chile	13.99	11.50	11.06	9.38
China/Rest	9.88	9.03	3.00	3.00
China/Guangdong	4.19	3.74	2.10	2.10
China/Shenzhen	2.76	2.32	1.20	1.20
Denmark	17.88	16.90	13.65	12.60
Finland	17.88	16.90	13.65	12.60
France	11.15	10.63	8.75	8.19
Germany	11.04	10.33	8.75	8.19
India	10.84	10.29	8.40	7.35
Indonesia	11.86	9.91	9.10	7.00
Ireland	11.04	10.41	8.75	8.19
Israel	17.66	17.66	13.65	13.65
Italy	11.04	10.33	8.75	8.19
Japan	9.89	9.24	7.70	7.00
Korea (South)	8.81	8.81	7.00	7.00
Liechtenstein	11.04	10.33	8.75	8.19
Luxembourg	16.30	15.00	12.60	11.20
Macau	3.39	2.69	2.73	2.10
Malaysia	6.95	5.62	5.53	4.20
Mauritius	12.39	10.62	9.80	8.40
Monaco	17.71	15.93	14.00	12.60
Netherlands	11.04	10.33	8.75	8.19
New Zealand	14.15	12.76	11.20	9.80
Norway	14.15	12.45	11.20	9.80
Philippines	9.70	9.70	7.70	7.70
Portugal	10.59	10.48	8.75	8.19
Singapore	6.06	4.30	4.83	3.29
South Africa	12.36	10.59	9.80	8.40
Spain	17.51	16.21	13.30	11.90
Sweden	12.37	10.59	9.80	8.40
Switzerland	11.04	10.33	8.75	8.19
Taiwan	7.20	7.20	5.53	5.53
Thailand	10.59	9.00	8.40	7.00
U.A.E.	16.27	14.97	12.60	11.20
U.K.	9.70	8.81	7.70	7.00
U.S.A.	8.81	7.92	7.00	6.30
Rest of World	12.36	10.59	9.80	8.40

Notes:

1. Outgoing data calls of a month are charged at Normal Rates if the total volume of outgoing data call in that month does not exceed 200,000 minutes, above which outgoing data calls of a month will be charged at Volume Rates.
2. Off-peak periods are between midnight and 7:00 a.m. from Monday to Friday; and 1:00 p.m. Saturday until midnight Sunday, and whole day on Sunday.

"