Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for NGN Broadband Network Product To provide consumer broadband to end users To provide business quality broadband to business end users To resell both consumer and business quality broadband as a wholesale product to other SPs and CPs. Tom Saville Cleo Carris Jones BT Wholesale January 2006

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Forward looking statements – Caution advised Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of These statements include, without limitation, those concerning: BT's plans for transformation of its networks; benefits to customers of the 21CN programme; key milestones and expected timetable for delivery of 21CN; and the benefits in relation to, for example interconnect, convergence and broadband. Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual outcomes may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause differences between actual outcomes and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; supplier arrangements; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised.

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for NGN Broadband Network Product Raw stripped down product Similar features to Datastream, but with significant improvements Interconnect to be available at Tier 1 MSANs SVLANs to cover complete CMSAN Groups to maximise use of capacity and avoid stranded SVLANs. Bandwidth to be available to any CMSAN or CMSAN Group in a range of SVLAN capacities and either dedicated bandwidth or shared bandwidth can be chosen to each. SPs should have the ability to choose both options (dedicated and shared) to any CMSAN or Group and to overflow from fixed to shared if required. Both Asymmetric and Symmetric services to be supported as standard on each SVLAN. Rate adaptive up to 8M on ADSL and up to 24M on ADSL2+. Must be commercially attractive to offer high speed end users products Maximum available upstream rate speed required (832K?) for Asymmetric services. Pair Bonding required at the MSAN. Must be able to support Multicast.

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for 21CN – Consumer One product/one system from BT Same system / look like the same product Most economical solution for the geography that could be dedicated or shared VLANs FAS with shared VLANS & IP Layer Be able to change the contention to construct a portfolio of products Voice, fast internet, VOD, TV – quad play Multi-cast – to support `niche’ TV, local TV Maximum speed product (8M on ADSL, up to 24M on ADSL2+, VDSL when available) 1 product with national coverage. Definitely combination of shared (infill) and dedicated (control), ie 1 operating system and 1 sales front. Don’t want to order different products from BT

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for 21CN – Consumer Consumer Same day repair Improved economics/efficiency in backhaul Max use of any central link or ISH Overflow product – dedicated VLAN overflow onto shared VLAN Shared VLAN & Overflow traffic Dedicated VLAN Traffic Profile

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for 21CN – Business Requirements Sending data in both directions between Head Office and branches Private Circuit replacement Virtual Private Circuit Transfer data, systems 5 hour repair Guaranteed Jitter, Delay, Throughput, 99.99% availability Out of hours migrations 2 way symmetric transmission Upstream speed increasingly important for voice and data networks Fixed data rates where speed is not number 1 concern Consistency of service and stability

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. Industry Requirements for 21CN – Consumer & Business High bandwidth product (say 3M) available to a minimum 80% of the base i.e. a product that’s easy to market throughout the country Ability to prioritise packets to allow high priority users to get content when they want it SLAs, higher standard pay more. 2-way QOS, 1-way QOS Pick `n’ mix products

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change Applications Market Drivers- Consumer Market Applications 2005 Consumer Internet Voice TV Authentication Remote Storage & Backup E- information: e-news, ringtones services VoD Teleworking Music Downloads VoBB, Mobile 3G Convergence Gaming Online Gaming Downloads Managed security & monitoring Video Telephony Training /Education Managed Billing Remote Home security Managed Home Networks Bandwidth on demand / PAYG Bandwidth on demand (QoS) Intelligent Billboards Personalised Media

Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change Applications Market Drivers- SME Market Applications Managed business networks Videoconferencing Business Quality VoIP (2 way QoS) High definition Videoconferencing Remote backup Managed storage Business Personalised media VoBB, Mobile 3G Convergence Authentication Security VoIP/ VoBB Managed monitoring services Training/ Education e-tagging/ tracking Managed business access Managed billing Intelligent Billboards VPN Business Quality VoIP (1 way QoS)