NGNs – Network Nirvana? David Goldie, Chairman

This document is uncontrolled if printed or saved to a non-authorised site. Slide 2 Opal, the B2B division of The TalkTalk Group, brings the UK’s largest Next Generation Network to over 400 business partners.

This document is uncontrolled if printed or saved to a non-authorised site. Slide 3 What makes us different? Our network We own the most connected Next Generation Network (NGN) in the UK Our scale Over 4 million broadband lines Over 300,000 UK business sites Our commitment to Channel Partners Opal combined with Tiscali Business Services lead the market in NGN based voice and data services for partners and resellers

This document is uncontrolled if printed or saved to a non-authorised site. Slide 4 Is the NGN a “network nirvana”? A National NGN, operated efficiently, is the enabler of fundamental structural change in the telecoms market.

This document is uncontrolled if printed or saved to a non-authorised site. Slide 5 What is an NGN?  Unified multi-service QOS enabled network  End to end IP  Separation of conveyance from network intelligence and applications  NGN means you can build new services without changing network infrastructure  NGN accelerates innovation  NGN has lower operating cost than legacy networks Applications Network Intelligence Conveyance

This document is uncontrolled if printed or saved to a non-authorised site. Slide 6 Spend on network services is changing Overall spend on network services is declining Decline in PSTN telephony will accelerate Growth Areas  Ethernet & IP networking  VOIP  Internet-related services (including data centre) All Driven by NGN Availability Source: Gartner 2008 UK fixed network spend

This document is uncontrolled if printed or saved to a non-authorised site. Slide 7 Managed services and apps drive growth Value migrates to managed services and applications where value-add is more sustainable Source: Forrester 2008 UK business managed services spend

This document is uncontrolled if printed or saved to a non-authorised site. Slide 8 Ethernet over NGN is the BIG STORY?  Ethernet is the established standard for network interconnectivity, at work and in the home  It’s a disruptive technology, replacing Frame Relay ATM, E1, Token ring etc.  This is another telecoms inflection point (connectivity)  It can be delivered across NGNs with little incremental capex  It’s not distant dependant and it’s scalable  It’s end to end standards based, meaning compatibility

This document is uncontrolled if printed or saved to a non-authorised site. Slide 9 Ethernet growth in higher speeds Growth in Ethernet connections are fuelled by demand for higher speeds and by leased line substitution Source: Ovum 2009 UK Ethernet connections

This document is uncontrolled if printed or saved to a non-authorised site. Slide 10 Not all NGNs are created equal  ADSL service quality is a function of distance from customer premises to the network.  Ethernet fibre costs are a function of distance from customer premises to the network.  The success of TalkTalk means that we have: A deeply built access network - 1,695 exchanges High capacity core and transit network to the edge – with massive unused capacity It’s a scale game – why?

It’s all about scale… Opal Network Currently has 1750 NGN enabled Exchanges  This is 3 times as many as BT  This is twice as many as C&W  The Network currently carries 1.5 Billion minutes of VOIP traffic per month.  There are 4 Million data customers generating 150 Giga bits per second of public internet IP traffic This document is uncontrolled if printed or saved to a non-authorised site. Slide 11

This document is uncontrolled if printed or saved to a non-authorised site. Index Core Network 800Gb 400Gb 10Gb DWDM Nodes (Optical connectors) Collector Nodes Unbundled Exchanges Fig 3 Covers over 80% of businesses – 2.1 million business premises Commitment to increase to 2,000 exchanges for both MPF and SMPF by end % coverage of businesses Ethernet termination at 1,300 exchanges in 2010

Opal’s Ethernet access – simple, low pricing This document is uncontrolled if printed or saved to a non-authorised site. Slide 13 Product Opal annual rental (using local access solution) BT annual rental (Assumed local access solution) Opal discount from BTW’s published pricing 10Mbps to IPVPN£6,000£6,355 - £10,876*13.5% % 100Mbps to IPVPN£12,000£11,982 - £22,745*20.7% % * BT Wholesale pricing will be dependent upon the number of connections on the Hub that must be purchased as part of the BT Wholesale solution and the associated discount

This document is uncontrolled if printed or saved to a non-authorised site. Slide 14 Other national NGNs BT 21CN  Very good for people in South Wales  BT has to run 16 parallel legacy networks due to the complexity and cost of migration to 21CN – a sub-optimal outcome in terms of efficiency and multiple-service delivery  Long way behind original schedule C&W  Lack the scale to justify density of POPs, 802 vs Opal’s 1750* *

This document is uncontrolled if printed or saved to a non-authorised site. Slide 15 Opal’s comprehensive NGN suite  ADSL  MPF line rental & calls  Managed Service and L2TP  QOS including prioritised B2B & Voice packets  Carrier Ethernet *NEW*  UK’s Leading Voice Application Suite  Supported by dedicated UK based business support specialists  Award winning - Cisco Customer Service Excellence Award 2009

NGN based services – challenge or opportunity? This document is uncontrolled if printed or saved to a non-authorised site. Slide 16 Voice specialists Managed MPF ADSL SIP trunks over ADSL Ethernet replacement of ISDN 30 Inbound voice applications Opal offer training and assistance in the transition to data services for all partners ISPs, systems integrators & VARs MPF / SMPF ADSL Managed internet and L2TP service IP-VPN Ethernet access Supported by dedicated UK based business support specialists

Its only Nirvana if you choose the right partner to take you from TDM to NGN! We have one of the best account management support infrastructures and support networks in the industry including:  Three tier account management  Accredited workshop training  On site support for go-live Plus ongoing support from  Provisioning team  Service relationship managers  In-life support team  Reseller & technical support  Incident management  Billing support This document is uncontrolled if printed or saved to a non-authorised site. Slide 17 Over 15 years supporting the needs of our partners Over 800 professionals with award-winning passion for serving

Conclusion TalkTalk Group will continue to invest in the UK’s largest NGN Opal are committed to market leadership in Ethernet access products Voice as an application over NGN based ADSL and Ethernet is the future We are totally committed to the Partner Channel This document is uncontrolled if printed or saved to a non-authorised site. Slide 18

This document is uncontrolled if printed or saved to a non-authorised site. Slide 19 Thank you