PPC Industry Meeting 24 th February 2005

1. PPC Industry Meeting 24th February 2005

2. Partial Private Circuits • Disclaimer • BT has taken reasonable care to check that the information contained in the following slides was accurate at time of publication. • Any price indications or timescales contained within this presentation are estimates for information purposes only and do not constitute any contractual or other obligation. • In relation to any products/services referred to in this presentation which are currently under development and/or trial, BT gives no undertaking or other commitment that the product/service will be made commercially available • BT reserves the right to make changes to the information in this presentation at any time without further notice • Exclusive reliance on the information in this slide pack is at your own risk

3. Partial Private Circuits • Circuit Revenue Assurance Presentation – Geoff Hammond (separate slide pack)

4. Partial Private Circuits 21CN – Update from Industry Presentation

5. Partial Private Circuits • 21CN update (cont’d) • AP 21 Jan 05 / 4 To provide a list of products carried on the DPCN • The vast majority of circuits carried on the DPCN are Kilostream and Kilostream N, either as Private Circuits and Partial Private Circuits or as Kilostream tails into other services such as IPVPN. • The next largest category are Analogue Private circuits which are carried entirely (Digital over Analogue) or partially (trunk section) over digital bearers on the DPCN. • Smaller numbers of circuits are used to support:- • International Private circuits • Switched MultiMegaBit Data Services • Framestream • X25 • Featurenet • These services are being approached in the same way as Kilostream. The volume trends will be examined in 2008 to see if action is required to move these onto the 21CN platform to enable the DCPN to close.

6. Partial Private Circuits • 21CN update (cont’d) • AP 21 Jan 05 / 4Re Slide 9. BT to provide a list of PPC equipment that would become obsolete and when this is likely to occur. Also what it will be replaced with and how much it will cost. • It is likely that 21CN will only support SDH equipment, although the definitive list will not be available until the final design is complete and contracts are placed. BT will advise Industry as soon as this crystallizes but until 21CN is rolled out the full range of equipment on the price list will continue to be supplied. • AP 21 Jan 05 / 5To clarify if the reference on Slide 9, "Able to use any spare capacity on equipment " meant that where a DLE closes at a Point of Connection that does not become a 21CN Metronode, but the SDH or DPCN node remains,  spare voice interconnect capacity could be used for PPC (or other) provision to reduce the impact of stranded investment. • The slide only referred to capacity at an existing PPC Point of Handover and not a voice Point of Connection. In principle it could be possible to use interconnect capacity at a DLE for PPCs but there may have to be a change to the pricing to reflect additional Tier 1 backhaul costs.

7. Partial Private Circuits • 21CN update (cont’d) • Next Steps • John Lee appointed industry co-chair of Working Group • Date in the diary for next working Group • Agenda input required • Do you have any further issues now that you wish to raise on 21CN?

8. Partial Private Circuits • Product initiatives under consideration • Possible extension of geographic pricing • Trunk segment charge review • Extension of qualification date on Migration product • Project to improve fulfillment performance on 2mb PPCs (and other PCs) – pilot due to begin April 05 • Formal announcements will be made via the normal channels, with full briefings as appropriate.

9. Partial Private Circuits • QoS Performance - Reporting Update • Q3 Aggregated Report published on website • Q3 OLO reports to be distributed early March • OLO/Aggregate comparison columns on key measures included in OLO reports for first time • Retail Comparison will be available on CDD and Repair performance from Q4

10. Partial Private Circuits • QoS Performance – Q3 • Highlights • CDD performance improved since Q2 • Repair performance improved Q2 • Lowlights • FOCR has worsened - Project in place to address • PPC/Retail Comparison • CDD Retail 95.6% PPC 91.4% • Repair Retail 83.5% PPC 90.6%

11. Partial Private Circuits • Communications • Briefings & Notices published • ACCN 580 29/12/04- Price Cap notification – Connection Charges 0/04/05 • 05011 - Post Code matching brief • 05016 – Forecast procedures - reminder • customer briefing on reduced Local End Charge 2mb product in CLZ (via Account Teams) • Product Handbook Review scheduled March 2005 – please submit any issues by 9/3. • Planning to seek customer feedback on PPC Product Line in March. Your comments welcome.

12. Partial Private Circuits • Forecasting • Proposal to manage low volume forecast tracking • Where a customer forecasts less than 5 in a 4 month period the order tracking needs to be more flexible e.g. • In each bandwidth group • ·         Where 4 are forecast then an order for 3 or more wont be penalised. • ·         Where 3 are ordered then an order for 2 or more wont be penalised • ·         Where 2 are forecast then the customer will only be penalised if no orders are placed. • Tolerances • BT will apply common sense approach to %age change tolerances allowed from one forecast quarter to the next.  Where the tolerances cannot be practically applied. • Your thoughts please

13. Partial Private Circuits • Retrospection • Final figures published to all Operators • Issues require evidence. • Price Cap • Ofcom published 30/09/04 • New prices introduced 01/01/05 • New CPL format introduced 29/12/04 – your views • New Connection charges 2mb and below effective 01/04/05 • Billing • Continues to improve • CRAB initiative, refer to Geoff Hammond presentation

14. Partial Private Circuits • A.O.B • Next Meeting Scheduled • May 25th BT Business Showcase • Proposed Future Dates • 8th Sept • 1st December