BT’s Next Generation Network for resellers

1. BT’s Next Generation Networkfor resellers

2. Event objectives • Build awareness of BT’s next generation network and the migration process • Share the most relevant information • Explain the call to action for resellers and explain how and why you should get involved • Answer your questions and establish where to find required additional information

3. Agenda

4. BT’s next generation networkWhy? What? When?

5. For example... Since the invention of the microprocessor, the cost of moving a byte of information around has fallen on the order of 10-million-fold… Putting it into context… That's as if a 747 plane, once at $150 million a piece, could now be bought for about the price of a large pizza. “Technology is not kind. It does not wait. It does not say please. It slams into existing systems. Often destroying them, while creating new ones.” Joseph Schumpeter (1937)

6. Setting some context for BT’s 21CN in the UK • 20+ million customers (30M lines) in the UK • Residential ► SMEs ► Large corporates • Regional ► National ► Virtual CPs • PSTN/ISDN ► Leased lines ► Broadband ► IP/MPLS/Ethernet

7. 21CN – three key objectives Offer exciting new services for end users faster than before End userexperience & empowerment Speed to market Empower the end user with control, choice and flexibility like never before including communications from anywhere to any device Cost transformation Reduce costs and grow cash cost savings - expected to amount to £1 billion per annum

8. BT’s current UK network PSTN Leased lines PSTN Copper KStream DSL ATM PDH access IP Fibre SDH VC-12 SDH access SDH VC-4 MSH -SDH PDH access PDH End User ~5.5k sites ~300 sites ~100 sites ~15 sites ~2k sites ~1k sites

9. BT’s 21CN in the UK Multi-service access Converged core Class 5 Call Server Copper WWW IP-MPLS-WDM Fibre MSAN ISP Content Wireless End User ~5.5k sites ~100 sites

10. The network components BRAS MSAN Metro Metro IP/MPLS/SDH core Ethernet/SDH backhaul MSAN Metro Metro Call server

11. 21CN – an end-to-end transformation Service 21CN customer experience Core network convergence Remakethe portfolio Web21CN Network Products

12. Preparing for going live Voice transformation trial Strategic solution lab testing Customer equipment compatibility testing Strategic solution deployed in South Wales Interoperability testing End customer communications Integrated system and process testing Exchange migration process testing

13. End user migration progress 2011 2010 2009 2008 Broadband PSTN Both 2007

14. 21CN – planning the UK rollout • Industry agreed rollout plan to get 21CN across the UK in the quickest possible way • Industry is working hard to ensure smooth end user migration Broadband • To maximise the early end user footprint and to drive the UK broadband industry • Up to 24Mbit/s broadband available from early 2008 PSTN / ISDN • Replacement of older equipment first • Rural exchanges migrated with urban neighbours

15. Obligatory product headlines • 21CN roll-out will cause little or no change to many of today’s products • 21CN will enable new Access, Broadband and data products

16. Product portfolio impact Migrating – Migration of existing products to 21CN. Includes: PSTN (includes, for example, CPS, Least-Cost Routing) ISDN2e, ISDN30e, WLR, DASS2 New – New products enabled by 21CN. Includes: Wholesale Broadband Connect Wholesale Broadband Managed Connect Wholesale Broadband Connect Converged Voice Line Access Retaining – Products retained on existing platform for the time being Analogue PCs, KiloStream, MegaStream Retiring – Products that have reached the end of their life-cycle or that have a replacement in the new portfolio. Includes Pre-ETSI ISDN, Meter Pulse Facility, Smart Divert, DataStream

17. New product launches • Voice Line AccessLike WLR but the line is controlled by the service provider for incoming and outgoing calls • Wholesale Broadband ConnectLike IPstream and Datastream (which it will gradually replace) but with downstream speeds of up to 24Mbit/s • Wholesale Broadband Managed ConnectLike WBC but with more flexible handover arrangements and optional managed services • Wholesale Broadband Connect ConvergedLike WBC but includes a voice line capability controlled by the service provider

18. 21CN – key points • Customer experience is paramount during the migration • Industry-wide engagement • Massive scale, huge investment • All PSTN, ISDN and broadband lines hosted on BT’s network will be migrated to a new network • Driving a radical simplification • Moving from service-specific platforms to a multi-service platform • Little or no change to existing products • Scope of 21CN does not require any immediate change to the copper network • Implementation is underway • Planned to complete by 2011

19. In summary … End customer site Access network copper pairs 21CN MSAN ISDN • Deployment of BT’s 21CN BT serving exchange building DSLAM 20CN PSTN switch Main frame • Disconnect copper pairs from 20CN and re-connect onto 21CN • No change to CPE • No change to home or office wiring • No change to copper access network • No need for end customer site visit

20. BT’s next generation networkWhy? What? When? for more information visit www.btplc.com/21CN

21. BT’s NGN – what it means for the reseller community & what the reseller community needs to do

22. A major change for the industry… Service 21CN customer experience Core network convergence Remakethe portfolio Web21CN ...but a great opportunity Network Products

23. Why resellers should get involved and the value add for your customers Why get involved? • To avoid problems – real or imagined • To provide informed, proactive advice to your customers • To pre-empt customer issues on things like CPE and outages Adding Value • You can add value to your customer relationships • You can help build awareness of the switched-on campaign. • Future opportunities for new products.

24. Practicalities of the migration process • It will be a phased migration programme over 5 years and you need to be aware of the migration schedule • There will be service breaks – e.g. PSTN migration up to 3 minutes outgoing and 30 minutes incoming and there will be a voice service outage as a result of broadband migration • There will be an impact on some products and services e.g. withdrawal of meter pulse and changes to Smart Divert • The most up to date information on migration impacts can be found in the Transfer Engineering Matrix – via Consult21 website

25. How to be engaged and build awareness • Remember that your supplier/carrier can raise any specific issues on your behalf through the Consult21 programme • Work together to support your customers • Understand the key impacts and build awareness • Be engaged and involved with the reseller communications programme • Use the switched-on toolkit materials

26. An industry joined by a common goal • FCS, Gamma Telecom and other members of industry involved • Reseller Communications Working Group in place since January 2007 • to build awareness of the migration programme with the reseller community, e.g. webcall programme • End user switched-on communications programme launched in October 2006 • Supported by Ofcom

27. Reseller call to action – you can help by ... Providing pro-active advice and support to your customers Providing reassurance and information to your customers Building awareness of the switched-on campaign Being aware and prepared: know where to go for information use the switched-on communications toolkit register for the reseller database

28. Questions  Answers

29. Break (15 minutes)

30. Agenda

31. 21CN Testing Overview

32. Component Tests S a f e t o L i v e Proof of Concept Environments 100,000s Network Assurance Laboratory (NAL) – NIT / IV&VT Safe to Connect’s Infrastructure FOA LAT & Service FOA’s Voice / Data / Broadband E2e tests LAT & Transfer Engineering FOA’s Voice / Broadband / ISDN 10s Test complexity The many facets of testing • Proof Of Concept • Vendors testing • Conformance Testing (CT), Multi-Vendor CT (MVCT) and Network Integration Testing (NIT) • OSS testing • Integration Verification & Validation Testing (IVV&T), end to end OSS testing • Infrastructure/network testing • NIT and First Office Application (FOA) • CPE testing • Service testing • User & Live Acceptance Testing (UAT/LAT), Service FOA (SFOA), Consult21 Conformance Testing Working Group, Experience Development Centre (EDC), Supplier & Carrier test facility Swansea • Transfer engineering • Test tools and test automation

33. First Office Application (FOA) - Approach BRAS Broadband Remote Access Server MSAN Multi Service Access Node FOA First Office Application IP Internet Protocol DCData Centre CSCall Server TxTransmission VVoice BBBroadband MSAN BRAS Data Centre Core Metro MSAN Element Managers and OSS CS Core Metro DC Infrastructure FOA Tx FOA BRAS FOA IP FOA CS FOA V MSAN FOA BB MSAN FOA Voice Service FOA1 Broadband Service FOA1 Operational Testing Transfer Engineering FOA1 Data Services FOA1

34. Trials & testing - three phased approach • Proving the manual/automated methods for preparing the frame for Transfer Engineering (migrating the customer to 21CN) • Producing quality procedures • Testing the synthetics used in modelling resources • Assessing the impacts on customer service • Progressively introducing the testing and trialling of Voice, Broadband and ISDN migration methodologies • Use of business scenarios / test cases to provide end-to-end testing of migration PHASE 1 PHASE 2 PHASE 3 Proof of concept trials / lab testing Out of service trials (FOA1) • In service / live trials (pathfinder) (FOA2)

36. BT’s 21CN & Customer Premise Equipment (CPE) compatibility

37. 21CN CPE compatibility • What are the implications for CPE of 21CN? • Objectives and scope of CPE Compatibility Testing programme • CPE Compatibility Testing progress & focus • Result publication • Information and reference

38. What are the implicationsfor CPE of 21CN?

39. Implementing services on 21CN PSTN: • New PSTN line cards in new MSAN edge equipment • IP packet based transport of voice data (legacy PSTN uses switched circuit transport) ISDN: • New ISDN line cards in new MSAN edge equipment • IP packet based transport of voice data (legacy PSTN uses switched circuit transport) Broadband: • New ADSL/ADSL2+ line cards in new MSAN edge equipment • Same IP packet based transport as existing broadband Some of these changes cause certain characteristics to differ from those on the existing network

40. CPE related 21CN differences PSTN • Loop current: maximum off-hook loop current reducing • Ringing implementation moving to balanced ringing PSTN and ISDN • Echo cancellation used unless fast modems are detected • Audio path discontinuities when jitter buffers adapt • End-to-end delay increasing Broadband • No fundamental changes expected

41. Network is built to standards BT Suppliers Information Notes (SINs) • Migrated services will continue to be consistent with what is in the current SINs UK transmission plan • 21CN meets the performance criteria & specifications of ND1701 issued by the NICC

42. CPE compatibility testing: Objectives and scope

43. Objectives of CPE Compatibility Testing • Feedback into the 21CN design, if and when compatibility issues are found • To help rule out CPE compatibility related issues or identify and apply appropriate solutions ensuring detail is available to all relevant stakeholders • To help manufacturers and other stakeholders ensure that CPE functions properly on 21CN • Where relevant, assess impact of migration process

44. CPE compatibility testing: Progress & focus

45. Testing update PSTN • Standalone mass market (business & consumer) - no significant problems • PBXs. 1 issue • Devices that connect to some form of receiving centre - a very few devices have issues Broadband • Well down track with initial testing of around 70 ADSL modems & modem/routers representing all existing chipsets - no problems to date ISDN2/30 • Testing yet to start – trial ISDN migrations March ’08, Oct ’08 for mass migration

46. High priority categories • Security • Telecare • Telemetry • ATM • PoS terminal • Payphones • Emergency phones

47. We are collaborating with … • Carriers & Suppliers • BSIA – British Security Industry Association (Security systems) • TSA – Telecare Services Association (Social & Telecare for the vulnerable) • ENA – Energy Networks Association (Gas & Electricity) • WITS – Water Industry Telemetry Standards (Water Industry) • Environment Agency • Link Network (ATMs) • Home Office – specifically custodial services (Tagging devices) • APACS – UK Payments Association (EPOS/EFTPOS) • Payphones • CAA/NATS – Civil Aviation Authority & National Air Traffic Services • Trinity House – lighthouses, coastguard • Fire Industry Associations • Network Rail (Railside emergency phones, signalling etc) • Lifts & Emergency Phones ... and the list is growing.

48. CPE compatibility testing: 21CN test result publication

50. Switched-on test result examples