Rory Murphy Head of Digital Media Propositions & Customer Engagement BT Wholesale March 2011

1. BENEFITS OF BUILDING AN IN-HOUSE CONTENT DISTRIBUTION NETWORK (CDN) Rory Murphy Head of Digital Media Propositions & Customer Engagement BT Wholesale March 2011

2. CONTENT SERVICES FROM BT WHOLESALE • BT owns & manages the largest communications network in the UK • Provides a wide range of digital media distribution services to the entertainment industry - for 50+ years • Media services incorporate BT Media & Broadcast, BT agilemedia & BT Wholesale Content Services • Introducing a new approach to content distribution & delivery -developing broadband as a TV platform • Content Connect (CC) - a CDN built to address exponential growth of broadband video traffic

3. BT WHOLESALE & ISP BROADBAND MARKET • ~19.5 million UK broadband lines • BT Wholesale provides broadband: • to around 8m UK homes & businesses • to 600+ fixed & mobile operators & ISPs • BT investing £2.5bn in fibre & continuing to roll out advanced copper broadband • broadband services provided on an open wholesale basis (Source: Enders Analysis)

4. MARKET CONTEXT

5. A MANAGED NETWORK DELIVERY Off-Net Edge-Net On-Net

6. CONTENT DELIVERY IN A MANAGED NETWORK • Off-net delivery service incurs the end to end costs • CDN • Core & Backhaul • Access • Over-The-Top (OTT) delivery fragments the end to end costs • CSP incurs CDN costs • ISP incurs network costs • On-net managed networks can balance between cost & quality • To deliver a consistent experience to the end user • To provide cost effective delivery

7. BT WHOLESALE’S CONTENT CONNECT FAMILY Basic: routes traffic via Internet and is comparable to standard ‘Over The Top’ Internet CDN delivery. Broadband access is not part of this service Standard: enables ISPs to present content to BT for caching within BT Wholesale’s broadband access network to participating ISPs’ end users Premium: provides advanced quality of service within the broadband access network to assure delivery to end users Custom: Extension and integration of CC into LLUO networks with agreement of third party operators Content Connect Basic Standard Premium Custom Sold to CSPs only Sold to ISPs only Sold to ISPs only Sold to LLUOs only 100% UKCoverage ~8m BTWUsers LLUNetwork Users

8. BT WHOLESALE’S CONTENT CONNECT FAMILY Basic: routes traffic via Internet and is comparable to standard ‘Over The Top’ Internet CDN delivery. Broadband access is not part of this service Standard: enables ISPs to present content to BT for caching within BT Wholesale’s broadband access network to participating ISPs’ end users Premium: provides advanced quality of service within the broadband access network to assure delivery to end users Custom: Extension and integration of CC into LLUO networks with agreement of third party operators Content Connect Basic Standard Premium Custom Sold to CSPs only Sold to ISPs only Sold to ISPs only Sold to LLUOs only 100% UKCoverage ~8m BTWUsers LLUNetwork Users

9. … TO ADDRESS NEEDS OF ISP & CSPs ALIKE - Achieving full UK broadband coverage for all CSPs • Offering network bandwidth & core CDN services via IP address management • Serving video content within ISP networks or via ‘Over-The-Top’ • internet delivery route • Basic: OTT Delivery • Standard: ‘Through the network delivery’ • Premium: QoS ‘Premium’ in addition to Standard Core Internet CDN CC BASIC 100% UK Coverage ISP Network Product CC STANDARD Superior delivery Features & Capability Priority Delivery CC PREMIUM Quality of Service Timeline

10. CONTENT CONNECT ARCHITECTURE CC Content Caches CSP Origin Server CC Standard CC Basic traffic WWW (Internet) CC Premium 21CN Backhaul DSL ISP Network BRAS MSAN CC Basic & all otherinternet CDN traffic WCC Origin Server ISP Origin Server

11. Developing a secure destination zone for Content Connect partners to manage their business Content management, cache deletion… Skytide insight for performance, reporting & analytics across all ISPs Ability for CSPs to view volume & actual content (url) delivered by ISPs Fault management & help features Service management & training Access to billing information Network status visibility All under one wholesale.com security & authentication wrap A DEDICATED SERVICE PORTAL FOR PARTNERS

12. BROADBAND VIDEO DISTRIBUTION FOR UK PARTNERS BT sees broadband as a video delivery platform & a viable complement to DTT, Cable or Satellite A NETWORK CDN Deployed deep in BT’s network A basic OTT option & plans to introduce a managed service variant for 3rd party networks A QUALITY USER EXPERIENCE CC Assured provides traffic prioritisation in the broadband access network delivering a predictable & consistent user experience TRANSFORMING THE COMMERCIAL MODEL Establishing a new commercial model for content delivery which brings the ISP into the ecosystem & offers greater choice for CSPs INSIGHT AND OPERATIONAL SIMPLICITY A single reporting portal for deeper audience & operational insight with industry leading reporting system from Skytide BT WHOLESALE CONTENT CONNECT

13. THANK YOU

14. THE UK WHOLESALE MARKET Homes/businesses Managed network services Fibre BT Wholesale Broadband, data, voice Copper Fibre Exchanges Copper Openreach Access products (LLU, WLR, GEA, Backhaul)