SCHEDULE 1U.K.CONDITIONS INCLUDED UNDER SECTION 7 OF THE ACT

Condition 10

REQUIREMENT TO OFFER CONTRACTS FOR TELEPHONE SERVICESU.K.

10.1  Where the Licensee runs a Public Telephone System, the Licensee shall offer either to enter into a contract with each of its Subscribers which complies with paragraph 10.2 or to vary an existing contract to comply with paragraph 10.2, except to the extent that the Licensee has already entered into a contract which complies with these requirements.U.K.

10.2  Subject to paragraph 10.4 the contract referred to in this Condition shall either specify the type of service offered and the terms and conditions on which the telephone service is to be provided under the contract or shall make reference to publicly available terms and conditions. The contract or publicly available terms and conditions shall at least specify, if relevant:U.K.

(a)the supply time for initial connection;

(b)the types of maintenance service offered;

(c)the compensation or refund arrangements or both for the Licensee's Subscribers which apply if the contracted service is not met and, if none are applicable, a statement to that effect;

(d)a summary of the method of initiating procedures for the settlement of disputes; and

(e)information on service quality levels offered.

10.3  The Licensee shall secure such alteration to the conditions of any such contract, and the conditions of any compensation or refund arrangements or both used by the Licensee, as the Director may direct pursuant to regulation 15(4) of the Revised Voice Telephony Regulations.U.K.

10.4  Paragraph 10.2(d) above shall apply to the Licensee only to the extent that it runs a Fixed Public Telephone System by means of which it provides Fixed Publicly Available Telephone Services.U.K.