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Forward looking statements – Caution advised

CONSULT 21 Broadband and LLU Working Group IPstream - MIGRATION TO 21CN Andy Jugg Ynyr Roberts 29 th Sept 2005. Forward looking statements – Caution advised.

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Forward looking statements – Caution advised

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  1. CONSULT 21Broadband and LLU Working GroupIPstream - MIGRATION TO 21CNAndy Jugg Ynyr Roberts 29th Sept 2005

  2. 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.

  3. 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

  4. TSR Impacts - 1 IPSTREAM – Current Position BTW CPs SPs IPSTREAM Current Network Platform Transaction boundary

  5. TSR Impacts - 2 Interaction with Openreach BTS (IPSTREAM) CPs SPs OPEN REACH Two transaction boundaries Current Network Platform

  6. TSR Impacts - 3 IPSTREAM supply during 21CN roll-out End to End service is the same in both cases Non 21CN Areas current network (two transaction boundaries) BTS (IPSTREAM) CPs SPs OPEN REACH 21CN Areas New Network (three transaction boundaries) BTS (IPSTREAM) OPEN REACH BTWS (FAS) CPs SPs

  7. IPSTREAM WITH NEW INTERNAL TRANSACTION BOUNDARIES All internal transaction boundaries will remain invisible to customers ‘management’ layer End to End offering With IP Applications, etc. End to End offering basic connectivity LLU Flexible Access Services (~ 21CN Datastream) IPstream Metro node ‘core’ BRAS etc Local Loop MSAN

  8. IPSTREAM MIGRATION TO 21CN

  9. IPSTREAM ON 21CN

  10. MIGRATION OF IPSTREAM ON TO 21CN (Including but not limited to changes to FAS timescales) .

  11. Potential Vision of IPstream “NEW” 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 QoS Speed controls, session steering. Weightings/contention Sets up multicast and controls Content delivery ISP 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. Range of centrals up to 10Gb With optional resilience Will include SP empowered configurability ISP Multiple sessions per end user access Up to 20? Central VoIP Content cache High bandwidth to MSAN up to 1Gb+ 256k-20Mb Internet Local caching for content with multi cast MSAN or BRAS? Copper resilience options ISP provides content - Segregated per ISP service Central resilience options IN “REQUIREMENTS CAPTURE” PHASE

  12. 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.

  13. ENHANCED IPSTREAM ENHANCED IPSTREAM BTS Enhanced IPstream OPEN REACH BTWS FAS CPs SPs 21CN Areas (three transaction boundaries) New IPstream is the proposed evolution of existing IPstream. Once again the CP/SPs will buy an end to end service and will not see the internal transaction boundaries

  14. POTENTIAL LAUNCH PLAN FOR NEW IP BROADBAND on 21CN (Including but not limited to changes to FAS timescales) .

  15. 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 • Bilaterals (1:1 meetings with ISPs and CPs) 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 • Bilaterals (1:1 meetings with ISPs and CPs) 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

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