Local Loop Unbundling

1. High Level Review and Status of Activities under the Telecommunications Adjudicator Scheme for Local Loop UnbundlingFurther details can be obtained by contacting Peter Black or Clive Fedida

2. Local Loop Unbundling The Vision The Objectives

3. Vision By January 2006 the LLU industry will have the operational capability to deliver more than One Million unbundled local loops per annum in a manner that will enable efficient, fair and viable competition on a high quality platform.

4. The Vision Will Deliver • Greater than 4,000 copper loops unbundled per day • BT Site preparation ahead of the Market needs • Customer Provisioning and Customer Faults no longer issues • Migrations between Products and Operators no longer a barrier to success • High Quality & Volume, Multi-Service Platform in Place

5. We will achieve the Vision through the Critical Success Factors Agreed with BT Wholesale and the LLU Operators • Throughput – Orders Processed per Day • Right First Time – Orders Delivered On Time, To Defined Quality • Telephony Migration – e.g. Number Portability • Broadband Migration – e.g. Existing Services Moving to LLU based services • Backhaul – Enhanced Products Required (consultation with Ofcom in process)

6. First Quarter Adjudicator Activities • Visit the scheme operators to obtain their input, share and develop the Vision - Complete • Identify the business plans where large early volumes will come from. Aggregate business plan physicals -Complete • Operators & BT to nominate senior operational exec to join the UK LLU ‘Market Breakthrough’ Executive - Complete • Paul Reynolds to confirm to industry BT support for Joint BT & Industry Vision and Critical Success Factors – Complete • Resolve/Assimilate Current Disputes & Concerns - Ongoing • Get support from the LLU working group - Complete

7. First/Second Quarter Activities Initiate Rapid Product Review – Complete Initiate Process & Automation Reviews – Complete Review and Develop Overview KPIs –Complete Review Need to Develop SLGs to Complement KPIs – In progress Walkthrough all processes from Customer Order to Customer In-service and Bill with Operators and BT – Complete Implement Key Measures Based On End User performance – 50% progress

8. Early Success • BT appointed a Director for LLU and are forming a single organisation to deliver the industry Vision for LLU • BT ramp-up of resources to cope with Number Portability demand • Suspension of penalties for under-achievement of MPF forecasts • Intervention required to help improve performance of newly introduced Broadband Migration process • BT agreed to overhaul change control for LLU Products, Processes and Systems with immediate effect

9. Market Breakthrough Executive Formed • Focussed Workshop held on September 2nd • Operational & product Executives, from Operators & BT were present • Analysed and Agreed LLU Success Criteria • Formulated outline Breakthrough Plan • Adjudicator Team co-ordinating overall plan • Detailed Workshops on Operations, Product and Automation held week beginning 13th September • First Pass Breakthrough Plan Produced by 30th September – Clarification work in progress • BT and Operators will execute Breakthrough Plan when agreed

10. LLU Operators Requirements - Output From Workshops • Co-mingling build predictability – ability to plan 12 month DSLAM rollouts • Backhaul products – longer reach LES/BES with aggregation • MPF and SMPF forecasting – renegotiate punitive under-forecasting penalties • Migration processes – implementation of Broadband migration and number portability • Systems – MPF and SMPF ordering and repair, parallel development, test systems, defect management etc • MPF and SMPF Delivery performance – volumes, RFT, on time • Repair products – equivalence, with PSTN and leased line • MPF and SMPF Repair performance – on time, accurate RWT

11. The Market Needs – Growth in Loops

12. Key Performance Indicators – Throughput Capability Required • 50K Lines Unbundled by January 2005 • 250K Lines Unbundled by June 2005 • 400K Lines Unbundled by September 2005 • 550K Lines Unbundled by January 2006 • 1M Lines Unbundled by June 2006 • Based on Operators and BT Forecasts

13. Key Performance Indicators – Delivery Quality Milestone Targets • Right First Time today 50% • Right First Time 75% by November 2004 • Right First Time 85% by January 2005 • Right First Time 95% by March 2005 • Right First Time 98% by June 2005 • Right First Time 99.8% by January 2006 (aspirational)

14. Vision By January 2006 the industry will have the operational capability to deliver more than One Million unbundled local loops per annum in a manner that will enable efficient, fair and viable competition on a high quality platform.