STANDARD CONTRACT FORUM CREDIT VETTING 24 MAY 2004

CHARLES WALKER

BACKGROUND CONTRACT TEXT: ANNEX F STORYBOARD: PROPOSALS IDEAS EXPLANATION S PROCESSES POLICY DOCUMENT:

WHO? 1.ALL NEW OPERATORS 2.EXISTING OPERATORS WITH 2 SECURITY NOTICES HOW LONG? 12 MONTHS – UNLESS AMENDED BY REVIEW

CREDIT VETTING REPORT SOURCES EXTERNAL INFORMATION ( D&B) 2.INTERNAL BT INFORMATION 3. OPERATOR SUPPLIED INFORMATION

CREDIT REPORT A.RISK INDICATOR B.CREDIT LIMIT (EXTERNAL SUGGESTED) C.CREDIT LIMIT (INTERNAL CALCULATION) EXISTING OPERATORS : IF NOT ADVERSE, NO ACTION OTHER THAN PROFILE MONITORING ALL OPERATORS: CREDIT LIMIT HIGHER OF EXTERNAL OR INTERNAL REVIEW AFTER 3 MONTHS

CREDIT LIMIT SET CREDIT LIMIT

ESTIMATED FINANCIAL COMMITMENT (FORECAST) Built into ACO Form New Call Type Categories Erlangs Converted into minutes Minutes Priced at Average quarterly outturns Turned into Estimated Invoice Values for months 1-4 Process is transparent

SECURITY LEVELS Operator A Forecast Operator B Forecast Security Needed Operator A Forecast Operator B Forecast Security Needed Operator B Forecast Security Needed MONTHS CREDIT LIMIT

Credit Limit Profile Security Cumulative Daily Usage, PIV vs. Credit Limit PROFILE MONITORING Cum’ve Actual PIV 5% Tolerance

DISPUTES 1.OPERATOR APPEAL TO BT 2.BT RESPONSE TO APPEAL 3.OPERATOR OFFER MEDIATION 4.MEDIATION UNSUCCESSFUL/REJECTED – ADJUDICATION 5.ADJUDICATION CAN BE BINDING IF AGREED MEDIATION AND ADJUDICATION USING INDEPENDENT 3RD PARTY

TIMETABLE ACOPUBLISHED EARLY MAY POLICYFINAL DRAFT READY ANNEX FFINAL DRAFT READY NEXTFINAL COMMENTS FROM INDUSTRY PUBLISHPOLICY AND ANNEX F OFFER TO INDUSTRY IMPLEMENT