OTC Australia and the State of Cambodia Ministry of Communications signed a major

new agreement on Nov. 10 which will result in a significant improvement in telecommunications

services between Cambodia and the rest of the world.

Under the agreement, OTC Australia-the offshore trading arm of the Australian and

Overseas Telecommunications Corporation-will construct a state-of-the-art telecommunications

center, an INTELSAT Standard "A" satellite station, and an international

gateway telephone exchange.

Training for personnel from the Department of Posts and Telecommunications (DPT)

will also be provided.

The new improvements will result in an additional 2,000 new phone lines which will

become available immediately once the new satellite station is in place. The system

will also be capable of both receiving and transmitting live T.V. broadcasts, which

will be leased by DPT.

"We're putting in place a system that ought to be able to service the needs

of the people of Cambodia until the year 2000," said Peter Shore, OTC Australia's

managing director, at the signing ceremony.

"We don't pretend that this will serve the needs of rural areas," he added,

"but it's an important start that through revenues will be able to help develop

domestic services in Cambodia."

OTC estimates that the value of their investment resulting from the agreement will

be approximately U.S. $10 million.