Forward looking statements – Caution advised

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CONSULT 21Broadband and LLU Working Group

IPstream - MIGRATION TO 21CN

Andy Jugg Ynyr Roberts

29th Sept 2005

Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to

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Forward looking statements – Caution advised

• Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities litigation Reform Act of 1995. These statements include, without limitation, those concerning: BT's plans for transformation of its networks; benefits to customers of the 21CN programme; key milestones and expected timetable for delivery of 21CN; and the benefits in relation to, for example interconnect, convergence and broadband.

• Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual outcomes may differ materially from those expressed or implied by these forward-looking statements.

• Factors that could cause differences between actual outcomes and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; supplier arrangements; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised.


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CONTENT

•Update on TSR obligations for IPstream

•Plan for existing IPstream migrating to 21CN

•Update on 21CN trajectory for IPstream

•Report on Requirements capture

•Downstream BB products on 21CN


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TSR Impacts - 1

BTW

IPSTREAM – Current Position

CPsSPs

Transaction boundary

Current Network Platform

IPSTREAM


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TSR Impacts - 2

BTS (IPSTREAM)

OPENREACH

CPsSPs

Twotransaction boundaries

Current Network Platform

Interaction with Openreach


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TSR Impacts - 3

BTS (IPSTREAM)

IPSTREAM supply during 21CN roll-outEnd to End service is the same in both cases

OPENREACH

CPsSPs

BTS(IPSTREAM)

OPENREACH

CPsSPs

BTWS(FAS)

Non 21CN Areascurrent network(two transactionboundaries)

21CN AreasNew Network(three transactionboundaries)


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IPSTREAM WITH NEW INTERNAL TRANSACTION BOUNDARIES

LLU Flexible Access Services (~ 21CN Datastream)

IPstream

‘management’ layer

End to End offeringWith IP Applications,etc.

End to End offeringbasic connectivity

Metro node ‘core’ BRAS etcLocal Loop MSAN

All internal transaction boundaries will remain invisible to customers


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Current BT Position

Note

Service Structure Will not change The baseline position is the list of services available now and the list of planned enhancements in the February 2005 Broadband and LLU Roadmap

Physical Interfaces

Will not change SP will see no change

Customer Ordering Systems

Customer Billing Systems

Customer Repair Systems

21CN network upgrade will not change customer facing systems

Some underlying BT systems will change as part of 21CN network migration but SPs will see no change.

Work is ongoing to upgrade the systems to drive improved customer satisfaction. This is BAU activity which will be managed as normal.

Note that the solutions to deliver TSR undertakings will impact customer experience. Further work being done to assess impacts.

IPSTREAM MIGRATION TO 21CN


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Current BT Position

Note

Service Performance

Expect to remain unchanged (please see note below on potential TSR impacts)

This can only be confirmed when new network platform is used to carry the service and end to end tests have been performed - expected early 2006.

IPstream services will be re-purposed for delivery on a new 21CN Ethernet platform. All BT Centrals will be delivered on the legacy network, to be replaced by new products that are delivered on 21CN and are TSR compliant. Requirements for New Centrals will be captured as part of ongoing 21CN requirements capture process.

Mass migrations to 21CN

No detailed information available mass migration at this time

Recognition that this information is required by customers

Pricing, Commercials and Documentation

Expect to remain unchanged.

Inputs taken to provide IPstream in order to be TSR compliant may mean that aspects of the IPstream Service and its documentation may need to change.

IPSTREAM ON 21CN


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MIGRATION OF IPSTREAM ON TO 21CNConfirmation of IPstream product migration plan 31/01/2005

Communication to Industry on Product migrations 31/03/2005

21CN Vendor Selection 29/04/2005

Update product trajectory (Cannot be completed pending rework of Network Design rework due to TSR) 15/09/2005

Confirm High Level design, using FAS as an input 31/10/2005

Details of 21CN roll-out plan and mass migration plan 30/12/2005

SIN / SPIN update (if required) 28/04/2006

Update product trajectory 01/05/2006

Feedback on end to end testing 30/06/2006

Feedback on the Alpha trial of IPS on new 21CN platform 30/06/2006

Customer trial of IPS on new platform Summer 06

Pathfinder - Start of mass migrations 2nd half 06

(Including but not limited to changes to FAS timescales) .


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Potential Vision of IPstream “NEW”

Central

Local caching for content with multi castMSAN or BRAS?

Internet

ISP

256k-20MbHigh bandwidth to MSAN up to 1Gb+

ISP

VoIP

As an option ISP controls on a per end user basis: Traffic profiling – http, P2P,news Packet prioritisation (use of DPI), time of day. Assured rate QoSSpeed controls, session steering.Weightings/contentionSets up multicast and controls Content delivery

ISP provides content -Segregated per ISP service

ISP provision all orders, repair,testing on one system.Enabled end user self service ordering and profiling via internet.Customer reports, MIS, Billing in real time.

Multiple sessions per end user accessUp to 20?

Range of centrals up to 10GbWith optional resilience

Copper resilience options

Central resilience options

Content cache

Will include SP empowered

configurability

IN “REQUIREMENTS CAPTURE” PHASE


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Enhanced IPstream

•This is an evolution of IPstream that will only be available in 21CN areas

•Enhanced IPstream will consume the same FAS module as that consumed by “regular” IPStream on 21CN

•Enhanced IPstream will offer as a minimum the same functionality that is intended to be available on regular IPstream (including DSL Max, QoS, EUSC etc)

•Enhanced IPstream may incorporate a new generation of “IPCentral” products to connect to customers and content, as an evolution of the existing “IPstream Centrals” family.


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ENHANCED IPSTREAM

ENHANCED IPSTREAM

BTSEnhanced IPstream

OPENREACH

CPsSPs

BTWSFAS21CN Areas

(three transactionboundaries)

New IPstream is the proposed evolution of existing IPstream.

Once again the CP/SPs will buy an end to end service andwill not see the internal transaction boundaries


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POTENTIAL LAUNCH PLAN FOR NEW IP BROADBAND on 21CN

Requirements capture 31/10/2005

High level product design 30/11/2005

Product Description published 30/11/2005

Detailed Product description published 31/03/2006

Pricing and Ts and Cs 31/06/2006

Handbook, SINs, SPINs, CRF published 31/06/2007

Alpha trial complete 30/08/2006

Customer trial (on 21CN) Autumn 06

Launch (in 21CN areas) 2nd half of 06

(Including but not limited to changes to FAS timescales) .


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IPstream within 21CN – Requirements Capture

•Announce intent to capture requirements to BB/LLU Working Group 29/9/05

•Set up BB/LLU Working Group IPstream Sub-Group 29/9/05

•Elect Industry Chairman 29/9/05

•Bilaterals (1:1 meetings with ISPs and CPs) w/c 3/10/05

•First Sub –Group Meeting, F2F or audio w/c 10/10/05

•First draft of Industry Requirements circulated to all end of w/c 10/10/05


•Second Sub-Group Meeting, F2F or audio w/c 17/10/05

•Second draft of Industry Requirements circulated to all end of w/c 17/10/05


•Report back on Final Set of Requirements to BB/LLU WG 28/10/05

•BB/LLU Working Group agrees Requirements 28/10/05

•Regular Report back to Industry on Product development versus

set of Requirements Ongoing

Forward looking statements – Caution advised

Documents

Transcript of Forward looking statements – Caution advised