Quarterly update on BT’s 21CN programme

1. Welcome to the second Quarterly update on BT’s 21CN programme 23rd January 2009 BT's 21CN programme is subject to consultation and further development. Dates and other details should be treated as indicative only, and subject to change

2. Agenda • Quick recap on 21CN - Reminder of objectives and current scope • 21CN review • - Voice review • 21CN Deployment Strategy Plan (DSP) • Recap of what it is, when is it issued and where can it be found • Key changes since the previous issue • Pathfinder progress and plans • Current consultation activities underway • Q&A • Feedback • Speakers: • Bill du Cann, Andy Norman, Debbie Lewis, Bob Corner

3. What are the objectives and scope of BT’s next generation network – 21CN? • The objectives of BT’s 21CN programme are to enhance the customer experience, accelerate product to market times and reduce costs • 21CN is fundamentally about customer choice. It is a platform for software-driven, open innovation by BT, our customers and partners across the globe • BT is streamlining 17 networks into one platform, reusing capabilities and removing complexity • The UK core infrastructure is 100% complete and will be capable of managing the significant growth in capacity from new media content

4. 21CN network architecture overview Multi-service Access Converged core service access Call Control Copper WWW Backhaul IP/MPLS Fibre & Copper MSAN Content ISP Wireless Other CPs’ networks MSAN = Multi-Service Access Node IP = Internet Protocol MPLS = Multi-Protocol Label Switching

5. 21CN plan review – what, why and when • Currently 21CN voice is being reviewed • We have paused any further development of WBCC and WVC • Additionally we are conducting a wider review of the 21CN programme, specifically next year’s roll out schedule • Expect to reach our main conclusions by end of February 09 • Continue to work to the latest Deployment Strategy Plan– other than in the area of WBCC and WVC where the development work is on hold

6. What is the 21CN Deployment Strategy Plan (DSP)? • The Deployment Strategy Plan (now at issue:5) provides: • A comprehensive and current overview of key elements of BT’s UK 21CN programme • Information on 21CN drivers, product and infrastructure delivery plans, trial and migration plans • Three main components are: • introduction/launch of new products • replication of existing products • migration of customers • Issue frequency and document access • There is a formal commitment to update/republish on a quarterly basis • For CPs - can be found via the secure area of the website, for access please contact helen.nurse@bt.com • For resellers – information can be obtained via your Communication Provider

7. Key updates and changes in the latest DSP Includes the proposed 21CN timetable and migrations – but this is subject to the overall programme review The strategy for voice delivery is currently under review (including session initiation protocol (SIP)-based architecture) Non SIP based voice solution developments continue (e.g. Wholesale Line Rental (WLR) and Next Generation Call Conveyance (NGN CC)) Includes a table of planned network upgrades and outages Confirmation of completed network affecting upgrades and outages for October to December Wholesale Broadband Connect (WBC) footprint is now approaching 20% of the addressable UK market – planned footprint remains at 40% April 09

8. Key updates and changes in the latest DSP • Confirmation of TDM intentions – maintaining current portfolio (PPCs) – but upgrade components to 21CN specification where necessary • ISDN intention remains to develop a like-for-like service to be launched in 2010 • Gives details of new Dataset around voice migration rollout - Dataset 51 (available Jan 09) • Remain committed to an agile approach to product development • Safeguarding customer experiences as part of 21CN implementation remains the number one priority

9. Voice migration pilot activity – Pathfinder 1 • The voice migration and pilot activity in preparation for voice network migration is known as Pathfinder • This pilot activity involves voice line migrations only at present • The pilot is taking place in a small area of South Wales • Pathfinder will provide learning and build confidence for large scale migrations • All planning and operational activities are carried out in close collaboration with a working group of service providers • We are contacting service providers with customers in the area ahead of migration activities

10. Where and when is Pathfinder happening?Completed exchange migrations There are now around 3,300 end customers with their voice service successfully carried over 21CN

11. Where and when is Pathfinder happening? Future migrations

12. Pathfinder – the learnings so far • Proved the slow start approach taken is the correct one • Proved the technology, processes and supporting tools with CPs • Early life failures – root cause analysis completed, fixes developed and deployed • Fault numbers currently running at or below figures for 20CN • Introduced a new complex-fault investigation team • Customer surveys completed – no significant issues reported • 21CN network has handled over 750,000 live calls • Ongoing Pathfinder learnings to date now published

13. Consult21 headlines

14. Consult21 forthcoming activities

15. Useful information & how to get engaged • More informantion?then contact helen.nurse@bt.com • Or visit these sites • The Consult21 website: www.btwholesale.com/consult21 • The independent public information website covering the process of migration: http://www.switchedonuk.org • For general information about BT’s 21CN programme go to: http://www.btplc.com/21CN/

16. Questions  Answers

17. Quarterly web-call – feedback • How was this for you? Was the content of interest Not Sure Yes No Duration About Right Too Short Too Long Level of detail About Right Too General Too Detailed Based on today’s information do you think you will be attending the next quarterly webcall? Yes Not Sure No

18. Thank you for coming on the call