INTERCONNECT PRODUCT FORUM Thursday 3 rd February

Thursday 3 rd February Keith Mitchinson Head of Carrier Contracts

Standard Contract Forum Session AIT New AIT Regime launched 1 March SIA General Contract Review proposed changes to notification by fax – investigations ongoing An AIT Contract Review is scheduled for March will generally follow contract review process agreed as part of 2010 SIA General Contract Review discussions i.e. Step 1 BT invites CPs to identify AIT review issues Step 2 CPs submit AIT review issues Step 3 BT consolidates, and adds it issues Step 4 Initial meeting Target to complete in 3 months [Note: BT committed to AIT Report to Ofcom August 2011 Thursday 3 rd February

Standard Contract Forum Session - continued BTW CREDIT VET POLICY General BTW policy – not SIA or PPCs New draft policy circulated informally for comment October 2010 (Draft issue 9 - Briefing Reference ) Single CP responded – essentially repeat of earlier issues/discussions Minor changes to draft: Commitment to inform of product changes Interest on deposits increased to Bank of England rate Appendix - listing of products – separated to ease addition of new products BTW Credit Vet Policy Issue 9 notified 2 February 2011 – to be effective 1 May 2011 Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review CP/BT issues collected and circulated June 2010 – that was the last general briefing to wider industry Participants: Everyone Everywhere, C&W, Verizon, Three, Gamma, VirginMedia, Colt, Carphone Warehouse Negotiation meetings held July, August, November, January Time to review progress, and re-brief wider industry Progress Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review reftitleprogress C1Inequitable notice periodsPURSUE VIA IPF: CPs want BT to increase notice from 28 to 56 days; BT say would consider if 90 days reduced to 56 – some CP support. Propose discussion informally with Ofcom – Gamma to lead C2Right for operators to reject BTs NCCNs for non- regulated services DEADLOCK CPs want right to reject BTs unregulated NCCNs; BT does not agree (note C1 would impact situation) Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review refissueprogress C3Obligation on BT to accept operators OCCNs for regulated services PURSUE VIA IPF: Agreed in principle for price control services – definition of scope and process to be developed/agreed C4RetrospectionDEADLOCK – REVIEW AT IPF CP s want favourable determinations to be automatically applied in transit situations. BT consider to be unreasonable and impractical. [BT looking for pre-agreement for more granular discussion ] Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review refissueprogress C5Retrospective rate changes relating to Third Party Operators or Overseas Systems DEADLOCK CPs want to limit BTs ability to increase prices retrospectively to be limited to regulated or determined prices. BT considers to be unnecessary, unreasonable and impractical C6Alignment of Interest RatesDEADLOCK CPs want to raise Oftel Interest Rate to match Default Interest Rate. BT considers unreasonable. Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review refissueprogress C7Administrative burden of faxes for submitting AIT claims PURSUE VIA SUB-GROUP – MIGRATE TO 2011 AIT CONTRACT REVIEW C8OCP-specific transit charges DEADLOCK WITH VIRGIN MEDIA VM want to allow operator specific charges only to be implemented with agreement of originator. BT considers unreasonable and impractical C9Liability cap levelNOT PURSUED BY INDUSTRY GROUP Thursday 3 rd February

Standard Contract Forum Session – continued SIA General Contract Review refissueprogress B1Contract Review processAGREED as amended B2Update Annex AAGREED as amended B3Change charge notification period for IDD AGREED as amended B4Consolidate all contracts to latest Reference Offer TBA Thursday 3 rd February