BTs Plans for its NGN EU Open Workshop on NGN Policy and Regulatory Issues 22 June 2005 Ittai Hershman Director, 21CN Commercial Development BT Wholesale

CAUTIONARY STATEMENT The material in this presentation represents current general technical thinking on how a converged IP network could be implemented. It does not necessarily represent BT's plans. The details of BT's 21st century network are still in the process of development and the subject of consultation.

THE CHANGING LANDSCAPE Convergence is gaining momentum Convergence needs an underlying infrastructure to deliver and support it End users want more choice, flexibility and control Simplicity is key

IP ATM PSTN DSL KStream PSTN Leased lines PDH Fibre Copper Access SDH End User ~5.5k sites ~2k sites ~300 sites ~100 sites ~15 sites SDH - VC-4 ~1k sites SDH - VC-12 PDH Access OUR CURRENT NETWORK PDH Access

IP-MPLS-WDM DSL Fibre Copper Aggregation End User ~5.5k sites ~130 sites Class 5 Call Server Content WWW ISP Muilti-service accessConverged Core 21CN - OUR SIMPLIFIED NETWORK For discussion purposes. No implementation assurances

INDUSTRY CONSULTATION Consult21 launched Summer 2004 Director recruited from industry 8 Working Groups, comprising: ­ Product Migration from Legacy to 21CN (E.g. Legacy Interconnect, PPCs, Broadband) ­ 21CN Migration Management ­ Next Generation Solutions (E.g. NGN Interconnect, Network Capabilities) Each WG has BT and Industry Co-Chairs Industry Steering Board (Ofcom monitors) All proceedings published on the Internet

NGN INTERCONNECT Converged Point of Handover ­ Multi-service pipe between two operators ­ Architecture (i.e. standards) to be agreed at NICC Service Specific Conveyance ­ Multiple services will be conveyed across a PoH ­ Some will be price controlled (e.g. PSTN), others wont ­ Some will require service specific network elements ­ Some services can be defined today, others cant For discussion purposes. No implementation assurances

HOW DEEP SHOULD PoH BE? BT proposed PoH at ~130 Metro node sites Some Operators want deeper PoH, because: ­ They have existing fibre assets that may be stranded ­ They want to leverage LLU investments ­ They want to intermediate the wholesale market ­ They believe conveyance will be cheaper Ofcom wants deeper PoH, because: ­ Policy of promoting infrastructure build ­ Greater competition for backhaul For discussion purposes. No implementation assurances

POTENTIAL HANDOVER POINTS For discussion purposes. No implementation assurances Metro Node Tier 1 MSAN Node MSAN Node CMSAN FMSAN TAMTAM Legacy MSAN Node CMSAN FMSAN TAMTAM Legacy MSAN Node CMSAN FMSAN TAMTAM Legacy CMSAN TAMTAM Legacy MSAN Node ~130 Sites ~1500 Sites ~4500 Sites ~5500 Sites P Router CORE DWDM 4/4/3 SDXC Core Node ~10 Sites ~ Voice/P C PE P Router CORE DWDM 4/4/3 SDXC Legacy switch function s Voice Intra Metro Ethernet Network Edge WDM Ethernet PE BRAS CMSAN Edge WDM FMSAN TAMTAM Lega cy ~ Voice/P C PE P Router CORE DWDM 4/4/3 SDXC Legacy switch function s Voice Intra Metro Ethernet Network Edge WDM Ethernet PE BRAS Tier 1 MSAN Node CMSAN Edge WDM FMSAN TAMTAM Lega cy CMSAN TAMTAM Legacy

SERVICE CONVEYANCE PROTOCOLS C7 PSTN REPLICATIONMULTIMEDIAATMNGN PPC For discussion purposes. No implementation assurances Note: ATM and Circuit Emulation over Ethernet subject to further standards work.

STANDARDS CHALLENGES Many fora developing open standards BT committed to NICC/TSG process Sourcing standards for consideration from: ­ IETF, TISPAN, Metro Ethernet Forum, 3GPP, etc. But, localised variants cost time and money ­ Balance between backward compatibility and the burden of forever carrying the past For discussion purposes. No implementation assurances

REGULATORY FRAMEWORK NGNs Are Driven by Cost Savings ­ No one can build it and they will come on revenue bet ­ Investment requires savings flow back to shareholders Regulators face a difficult challenge ­ NGNs are disruptive to traditional boundaries ­ NGNs challenge past regulatory assumptions (e.g. thin & disperse vs. fat & fewer interconnect) Regulation needs to focus on the future, not the past ­ UK embarking on a new path forward: equivalence

BTs FUTURE TECHNICAL ESTATE

21CN SUMMARY 21CN is the enabling infrastructure for growth at BT and for its customers The most ambitious business transformation programme in communications worldwide Represents a major investment by BT