Quarterly update webcall on BT’s 21CN programme

1. Welcome to the Quarterly update webcall on BT’s 21CN programme 26th October 09 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 Speakers: Nigel Scott, Chris Basey, Bill du Cann, Becky Hewlett

3. 21CN Deployment Strategy Plan (DSP) - key information & changesNigel ScottBTW, Industry Consultation 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

4. 21CN Deployment Strategy Plan (DSP) - intro • The DSP (C21-MG-015) was up-issued on 14th October 09 • Incorporates the 21CN Product Plans and describes BT’s plans for its next generation network known as 21CN. • Draws together BT’s current view of its 21CN deployment plans, regulated product availability and voice migration plans on an exchange by exchange basis, including points of interconnection • Dates for Pathfinder Volume POTS are currently being reviewed • Includes a coherent story of voice and broadband customer network affecting activities and impacts • NB: Available via the secure area of the Consult21 website - access is only available to BT’s CP customers – for access please email consult21@bt.com

5. 21CN Deployment Strategy Plan (DSP) – product overview updates • IPstream and Datastream • Both are retained on the current broadband platform until their withdrawal from service (not migrated to 21CN) • Will be replaced by products that provide similar and enhanced end user functionality – Wholesale Broadband Connect (WBC) and Wholesale Broadband Managed Connect (WBMC). • WBC • Now available at 568 sites • ADSL2+ deployment being enhanced to enable faster upstream line speed. Indicative delivery date March 2010 • Real Time is still on the product roadmap - indicative delivery date March 2010 • DDQ requirement has been removed from the product roadmap • WBMC • WBMC consuming IPstream Connect was launched on 30th September 2009

6. Wholesale Broadband Connect • Service available at end March 2009 to 40% of the UK (10m homes/businesses) • Service now reaching industrial end user scale • Plan is to increase availability to 55% availability (an extra 302 exchanges) by March 2010 • First additional exchanges went live in August 2009. WBC rollout: By March 2009 By March 2010

7. WBC footprint expansion – next phase intent • BT intends to rollout to ~75 % in 2010/11 - subject to wholesale customer demand • Plan extends to an additional 650 exchanges, c. 20 million end users • Addressing majority of exchanges in Market 3 and extending significantly into Market 2 • A range of possible rollout scenarios currently under consideration

8. Wholesale Ethernet • Service available from 600+ nodes by March 2009 • Plan to extend this to 800+ nodes by March 2010 • C. 700 by end Sept 09 • C. 800 by end Dec 09 • Remainder by March 2010 By March 2009 Shows nodes planned by December 2009.

9. 21CN Deployment Strategy Plan (DSP) – product overview updates • MSIL • Continuing to develop a resilient offering for launch early 2010 • 21CN PSTN Interconnect capability • Launch date is currently under review • Bilateral meetings with CPs taking place to understand requirements

10. Migration from NetVIEWplus to WCR (Wholesale Customer Reporting) WCR is the new reporting tool to replace the Netview Plus system and will include 21CN product measures. You will shortly receive more details about this, including an invitation to attend a Web Cast where you will see a live demonstration of the WCR system and have the opportunity to ask any questions you may have. We look forward to your attendance on the forthcoming Web Cast and to speaking to you all. In the meantime, if you have any questions you would like to ask beforehand, please do not hesitate to contact us by e-mailing the WCR Team at: btw.wcr@bt.com WCR Presentation

11. Partial private circuits update & TDM trial of the initial stages of the agreed 2Mbit/s and above strategyBill du CannTDM industry consultation manager

12. 21CN Deployment Strategy Plan (DSP) – product overview updates • BTW Partial Private Circuits (PPCs) • Sub 2Mbit/s PPCs • Sub-2Mbit/s TDM portfolio infrastructure strategy is being evaluated as part of a separate feasibility study. • We are investigating two main options: • 1) Extending the life of the current 20C DPCN beyond the current stated closure date of 2014; • 2) 21CN delivered options requiring the use of a sub 2Mbit/s NTE in conjunction with a 2Mbit/s circuit. • 2Mbit/s (and above) • BT Wholesale’s strategy for 2Mbit/s (and above) Partial Private Circuits is to retain the majority of its existing 2Mbit/s (and above) 20C PPC products and incorporate 21CN components over time to replace obsolete 20C network components. • PPC portfolio retains its existing framework i.e. Points of Handover (POH) and will continue to use native TDM (SDH) technology. • Initial technical trial towards the end of BT’s financial year 2009/10.

13. Trial description VC4 phase 2 FOA (Internal BT) is planned to complete 11/12. Network embargo from 14/12 /09 to 8/1/10 TDM demonstration is planned for Q4. Dates to be finalised along with scope. The TDM demonstration is being considered in two parts: 1. basic VC4 highway as below with testers at each end 2. once 1 is proven, extend to CP and route their circuits as below and test performance

14. TDM trial – details The current proposed trial area is in Scotland (route between Edinburgh and Inverness) A briefing has been issued asking CPs to register interest and to indicate the following: Preferred geographic area (with reasons) Confirmation of existing services and access infrastructure Preferred circuit types to test (speed, resilience, etc) An update will be provided in due course – however if you wish to participate please let us know…

15. Pathfinder Volume POTS & Network UpgradesChris BaseyPrincipal Consultant21CN PSTN/WLR Transformation Programme 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

16. Pathfinder Volume POTS – a quick recap • Again voice migrations only • Will complete a further 7 DLEs in South Wales • - Cardiff, G, L, E, F, Bridgend, Cardiff B, Pontypridd • Will complete the migration of up to 350K voice lines • Will provide key learning following migration of a complete DLE in a night • Switched-on communications will be issued • Project plan being revised in line with customer input • MSAN upgrades in Pathfinder area will take place prior to Pathfinder Volume POTS • First Call Server upgrades have already been successfully completed in readiness • Second Call Server software drop being planned • Includes remigration of groomed/regressed lines (eg EPOS lines)

17. CMSAN upgrades required • The upgrade schedule for the CMSANs is being developed • There will be short voice line outages for end users – 2 impacts • Upgrades will be performed in the early hours of the morning to minimise the impact • 25% of non-live sites will be upgraded before the first live site • Nelson will be the first CMSAN to be upgraded, followed by one week’s stability period

18. Migrations after Pathfinder Volume POTS • Voice line migrations will be done on an entire Digital Local Exchange (DLE) basis. • The pace and order of these will be determined by continuous review of the condition and capability of the current voice network and the pattern of demand for new voice services. • BT intends to start additional DLE migrations when the subsequent pilot Pathfinder phases involving Belfast, Thamesmead and Redditch have also been concluded. • This ensure the comprehensive proving of migration techniques • BT intends to provide a minimum of two years notice of DLE migration. • This means that voice line migrations to 21CN (beyond the DLEs listed for the pilot phases) will now occur no earlier than October 2011. • Migrations post Pathfinder Volume POTS will be available via the Datasets

19. Migrations after Pathfinder Volume POTS * * * • Candidate list objective • To provide a view of probable customer migrations beyond Pathfinder Volume Pots. • Enable you to identify future migrations and impact on customers • Selection criteria • The criteria by which the sites have been selected .. • 20C obsolescence – capacity & performance • Where DLE Interconnect migration has been completed or underway • Maximise use of proven 21CN core network. • Confirmation of dates • At this stage, planned dates are not available. • As we confirm our plans and determine dates these will be announced • We maintain our commitment to provide a 2 year window for notification when customer migrations will take place at these candidate sites * these sites complete the Pathfinder proving capability with dates yet to be confirmed, we have included with Candidate list for completeness.

20. ISDN • ISDN Strategy • BTis developing an ISDN like-for-like service to be deployed in line with the roll out of WLR services on 21CN • Huawei ISDN equipment will be tested in Northern Ireland - the trial will involve migration of all voice products (POTS, ISDN2 and ISDN30) on one DLE (Belfast East Unit B • Fujitsu ISDN equipment in the Pathfinder area in South Wales - the trial will involve the migration of ISDN services onto all nine DLEs in the Pathfinder area in South Wales that have already had their POTS services migrated • Two BT own-use ISDN trials as well as initially preparing Swansea for CP testing • CPs will be able to make use of the Swansea test facility from October 2009 and/or, if suitably located, one of the BT own-use sites for the voluntary trialling at an appropriate date • Delivery plans are currently under review

21. Key Consult21 engagement activitiesBecky HewlettBTW Consult21 work stream lead

22. Consult21 headlines - latest news • IPstream EUA withdrawal consultation nearing • conclusion • Bilateral engagement continuing on • interconnect requirements • Industry discussions on timings of Pathfinder • Volume POTS and network upgrades continue • via IMWG • TDM 2Mbit/s and above trial • Reminder to “opt-in” to Consult21 distribution lists • to receive the latest information

23. Consult21 headlines - latest news • Next phase of voice line migrations – Pathfinder Volume POTS • A further 7 DLEs in the South Wales area • We are inviting the CPs most affected to an event at the BT Tower • A chance to get up to speed on 21CN plans • A chance to see what practical help is available • Understand how to get engaged with the programme • Spaces are limited, if you receive an invite please • register early • We will be holding a further webcall in January

24. Useful information & how to get engaged More information?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/ If you have any hot topics for future 21CN webcalls please email:- Consult21@bt.com

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27. Thank you for coming on the call