Narrowband & IP Strategy Steve Wickenden & Dave Hughes 12 November 1999

 Objectives Explain issues for UK in current deployment of Narrowband Networks Describe NB capacity demand and supply Identify drivers for change Provide an overview of BT’s 2 year plan Inform OPF of our Dial IP proposals Provide an overview of Products and Pricing Provide an overview of deployment plans

 Narrowband Core Network Topology 795 DLEs 74 DMSUs (71 Sys X & 3 NGS) 33 DJSUs/WATs (32 Sys X & 1 NGS) DLE WAT/ DJSU DMSU DLE

 BT Plans to increase Narrowband Capacity Next Generation Switch Wide Area Tandems DLE Tandems Virtual Switch Location

 Next Generation Switch Replace System X DMSU/DJSU/WATs in fully interconnected single tier network. First switch operational 9/99 3 switches now operational 6 switches operational 11/99 11 switches operational 3/00 39 switches operational 3/01

 Wide Area Tandems 16 operational at 10/99 Provide access to/from directly connected BT Local Exchanges DLE Tandems Provide access to/from directly connected BT Local Exchanges First switch operational 4/00 80 switches operational 9/00

 Virtual Switch Locations POCPOC BT Switch A BT Switch B Operator Network Standard Interconnect Link Temporary Extension Circuit Operators will interconnect temporarily with a switch other than that requested - switch B rather than switch A BT meets costs of extending the Operators interconnect link to the offered switch BT meets costs of connecting Operators to requested switch when this is replaced by NGS

 BT Narrowband Demand Drivers Future demand is not “more of the same” PSTN future demand mix will be increasingly dominated by interconnect calls Interconnect demand is being dominated by Internet calls

 Core Network “In Use” Capacity Growth Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Jan-99 Feb-99Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 2Mbits BT to BTOLO InternetOther OLO

  OLO Forecasts of Interconnect Capacity for Internet Calls Dec-98Mar-99Jun-99Sep-99Dec-99Mar-00Jun-00Sep-00 2 mbits 06/98 Forecast 10/98 Forecast 03/99 Forecast 06/99 Forecast 09/99 Forecast09/00 Projected Outturn

 Narrowband Switch Limitations Not appropriate for long duration calls Inefficient transport for IP calls Higher unit costs compared to equivalent IP technology Narrowband solution may not deliver the optimum consumer prices

 Summary 1. BT’s plans will meet immediate demands on the narrowband network 2. Calls to the internet are driving the expansion of the BT and Operator Narrowband networks 3. Narrowband switches are not the best technology to use for volume growth of Dial IP traffic 4. The Internet explosion could drive IP investment to support Broadband Britain