Standard Contract Forum 22 July Customer Suite, BT Centre, London

Standard Contract Forum 22 Jul 2008 AGENDA 1Introduction and Notes of Previous Meeting 2Consult 21 3International Originated NTS Calls 4AIT Review 5SIA 2008 General Contract Review 6Special Phone Book Charges 7Review of New and Amended Schedules 8Annex A Update 9Any Other Business

Standard Contract Forum 22 Jul 2008 Bill Du Cann 22 July 08

Consult21 – Key aspects Plan of Record Refresh & Ofcom interest Pathfinder 17 on the 17 th Future plans Voice strategy WVC as the 21CN new product

Consult21 WG updates Systems & Processes Network Structure Implementation & Migration Communications Interconnect & Portfolio Point to Point BroadbandLine Access Working Group Management STEERING BOARD Expert Groups

Standard Contract Forum 22 Jul 2008 Sean Hartley 22 July 08

TDM Products Internationally originated 0844/0871 Access now available. Commercial Terms. DMA template and New Services manual updated. 03 Billing Automated billing delayed. Temporary manual solution in place – being extended to include transit calls.

Standard Contract Forum 22 July 2008 Keith Mitchinson 22 July 08

Standard Contract Forum 22 July 2008 SIA GENERAL CONTRACT REVIEW 2008 Review called June 2008 Agreed target for exchanging issues 18 July 23 issues identified (16 by CPs; 7 by BT); possibly a few more if a further CP confirms its issues for industry rather than bilateral negotiation Agreed plan on basis of MSA Contract Review Process BT to prepare issue list; arrange scoping meeting; brief wider industry Target for completion: end of the year Parallel exercise for PPC and MSA – look to co-ordinate review activity as appropriate

Special Phone Book Charges Ewen Watson

Special Phone Book Charges All current charges raised to date are billed up to the 30 th September 2008 New contract being negotiated with industry group Charges in latest draft contract are: PB800 National Listings Charging remains as now – billed for records on OSIS at end of September for 1 Year until end September 2009 or part year for any new listings entered on OSIS. Non-National Listings (PB codes and Bold Type) Charge will be raised in line with Phone Book Production date as an annual charge.

Special Phone Book Contract A Version 12 with industry sub-group for comment Plan to issue a final draft by end of July Plan to offer Version 1 for signature by mid-August Will include a discount rate on BT retail rates

Schedule 11 Update Data Quality Accuracy of data bought from CP is key Data integrity reports offered but low take-up An Annual Audit is a fall-back option; however: Plan to issue Operational contacts data quality reports From September to address the key faults with data: Commencing with invalid post-codes and telephone numbers of the wrong length Seeking support from CPs to ensure the accuracy of their data is addressed

Schedule 11 Update Pricing note to be issued to clarify: With GC19 determination, BTWDS will no longer pay for PB style listings (as they are only relevant to Phone Book & covered under earlier discussion A ported record does not currently attract a payment. Records ceased & then re-activated (with no amendment to data) will not attract a payment Review The value to downstream market of Additional Core data will be reviewed and whether payments to suppliers will be made (as not GC19 data, BTWDS would only pay for such listings if there was demand) – the facility to enter such a listing will remain in place

Standard Contract Forum 22 Jul 2008 Keith Mitchinson 22 July 08

Standard Contract Forum 22 Jul 2008 SIA CONTRACT DOCUMENTATION UPDATED SCHEDULES Schedule 07 – Reciprocal Non-Geographic Number Portability Schedule 167 – BT Imported NTS Service Calls and BT Imported 03 UK-wide Number Calls Schedule 367 – Operator Imported NTS Service Calls and Operator Imported 03 UK-wide Number Calls Schedule 225 – Emergency Calls

Standard Contract Forum 22 Jul 2008 Kevin Young 22 July 08

Standard Contract Forum 22 Jul 2008 Interconnect Circuits – Lead Time Reductions Interconnect Notification (Ref: 122/08) Response to customer SoR With effect from 18 th August 2008 New standard lead times for: Capacity dependant on new transmission infrastructure not requiring new duct New routes Timescale applicable will be shown on the agreed ACO

Standard Contract Forum 22 Jul 2008

Standard Contract Forum 22 Jul 2008 SIA Annex A changes Capacity Provision at a Switch Connection for a Traffic Route passing through a new Point of Connection on an Interconnect Link using PDH or SDH, one of the following as appropriate: a). 85 Working Days following the date of receipt of the relevant Capacity Order where provision of such new Point Of Connection requires new transmission terminating equipment only to be provided; b). 110 Working Days following the date of receipt of the relevant Capacity Order where provision of such new Point Of Connection requires new transmission terminating equipment to be provided and new fibre/cable to be provided and/or fibre splicing; c). 6 months following the date of receipt of the relevant Capacity Order where provision of such new Point Of Connection requires new transmission terminating equipment to be provided, new fibre/cable to be provided and/or fibre splicing and new duct to be provided Capacity Provision or Capacity Re-arrangement at a Switch Connection requiring a change of technology from PDH to SDH or SDH to PDH for a new or existing Traffic Route at an existing Point of Connection…….) - amended likewise

Standard Contract Forum 22 Jul 2008 SIA Annex A changes New Traffic Routes between Switch Connections through an established Point of Connection using the same technology, including the provision of new Traffic Routes by way of additional Customer Sited Interconnect from a particular Operator site: 25 Working Days following the date of receipt of the relevant Capacity Order New Traffic Routes over IECs at a Switch Connection using the same technology: 25 Working Days following the date of receipt of the relevant Capacity Order Capacity Re-arrangements involving the provision of new Traffic Routes using the same technology or a new technology already in service at the relevant Switch Connection: 25 Working Days following the date of receipt of the relevant Capacity Order Capacity Re-arrangements involving the provision of new Traffic Routes requiring IECs using the same technology or a new technology already in service at the relevant Switch Connection: 25 Working Days following the date of receipt of the relevant Capacity Order.

Standard Contract Forum 22 Jul 2008 Clarification re TDM Traffic Overflow Text to parallel that developed for NGN CC draft Planning and Operations documentation: 5.4.3Overflow Traffic Traffic overflowing as part of an agreed routing plan will be deemed to be included in the provisions of paragraphs and and shall be considered to be primary traffic. Unless otherwise agreed in writing between the Parties, Traffic overflowing shall be handed over at an alternative Traffic Route provided under this Agreement. For the avoidance of doubt, such overflowing Traffic shall not be subject to TDM to IP conversion before handover via interconnection provided under separate Agreement.

Standard Contract Forum 22 Jul 2008 Clarification of Responsibilities for 03 UK-wide Number Calls TRAFFIC TYPEPARTY HAVING THE RESPONSIBILITIES SET OUT IN PARAGRAPH OF ANNEX A Number Translation Services Calls or 03 UK-wide Number Calls (for termination not Transit) BT to Operator (termination of BT originated Calls and Calls transitting the BT System) Operator to BT (termination of Operator originated Calls and Calls transitting the Operator System) Operator BT

Standard Contract Forum AIT – Consultation Update and MSA – Contract Review Process Erica Cumming Senior Commercial Lawyer 22 July 2008

Standard Contract Forum – AIT Update AIT Annex E (Artificial Inflation of Traffic) – Consultation Proposals made available to industry 31 January/1 February following long-term industry discussions. Formal process: 1 Feb:Interconnection Notification 077/08 – consultation, 7 responses. BT responded individually on the matters raised and made amendments where appropriate; amendments discussed with industry group 23 April 14 May:Interconnection Notification 121/08 27 May: ed documents for signature (to 130+ CPs) – 4 weeks to sign 12 June:1st chasing 17 June:2nd chasing 24 June:3rd chasing Current Status: Writing individually to 30 CPs, only handful of rejections. As a formal dispute is established, BT proposes to refer to Ofcom

Standard Contract Forum – AIT Update NOTE: QUERIES ON SUPPLEMENTAL Queries dealt with on a bilateral basis – has generally led to signature Concern by some CPs regarding BT’s role in transit disputes – concern that paragraph 4.2 somehow allows BT to “drop out” of a dispute – this is not correct, rather is simply enables the ONO and TNO to speak directly where it is reasonable to do so. Even in these cases BT is still copied into all notices between the parties. This concern was previously raised by CPs and in April BT extensively redrafted paragraph 4.2 following the consultation exercise to address those concerns. The revised text added to the proposed new Annex E added provision that BT would remain active in transit dispute if it would be unreasonable for it not to be involved.

MSA Contract Review

Standard Contract Forum – MSA Contract Review 10 Step Process – aim for 23 weeks Step 1: BTW MSA Contract Review Briefing - officially start process Step 2: Submissions from CPs - collective or individual Step 3: Issues Document - BTW collate all issues Step 4: Classification & Workstream Meeting to classify issues: Cat A (Minor) – BTW issues its position 2 weeks later Cat B (Major) – BTW issues its position 4 weeks later Cat C (agree-to-disagree) – BTW issues position 1 week later Step 5: Classification Document – BTW issues after Step 4 meeting Step 6: Category A, B & C meetings/audios held over 7 week period Step 7: Consolidated Issues Response – BTW prepares for CPs to consider and respond within 3 weeks Step 8: Interim Revised MSA issued by BTW Step 9: Final Meeting to discuss revised MSA Step 10: Publish Revised MSA

Standard Contract Forum – MSA Contract Review Guiding Principles CPs may submit collective or individual initial submissions – collective responses are encouraged for expediency and to lessen duplication of issues; Individual responses will be merged with main review wherever possible and/or alternative review timescale may be agreed between BTW and CPs Issues will be dealt with collectively on a non-confidential basis – any confidential CP submissions will be dealt with outside of the main contract review process. If an issue is agreed by BTW and a simple majority of CPs in attendance (quorum of 4) it may be formally closed. BTW will (with assistance of CPs) prepare draft notes of meetings/audios and send to CP representatives for comment within 1 week of circulation, after which BTW will publish. These will be agreed if no comments received with 1 week of publication.

Standard Contract Forum – MSA Contract Review Variations to Timeline Ambitious 23 week timeline but parties may agree to amend if necessary, or may be necessary due to circumstances (i.e., shorten if only a few minor issues or lengthen if expert opinion required, for example) Document Recording Principles Templates for recording issues and giving summary snapshots will be developed at start of each review in consultation with CPs. Issues document (word) – list issue/sub-issues, relevant clause(s), CPs’ and BTW’s opinions, discussions, suggested redrafts etc.. In-life Summary document (excel) – updated and circulated regularly, contains basis information on ALL issues forming part of the review, lists party/parties raising issue, last activity and party responsible, next activity etc

Standard Contract Forum – MSA Contract Review Dispute Resolution At any stage in the process if there is an impasse, a party may invoke an Escalation, the CMM or ADR: Escalation - Can escalate an issue provided it has reached Step 6 (i.e., the meetings to negotiate and resolve issues). - Send “Escalation Notice” to other party’s commercial contact requesting escalation and advising who it has been escalated to in the initiating organisation. Acknowledge in 1 week days to resolve issue using appropriate senior managers and respond within 45 days of Escalation Notice. Contract Management Mechanism - See CMM process on BTW website Alternative Dispute Resolution - May include early neutral evaluation, expert non-binding determination or mediation, as provided by Chartered Institute of Arbitrator’s Independent Resolution Scheme.

Standard Contract Forum ocs/MSIL/MSA_Contract_Review_Guideline_Issue1_3July2008.rtf

Standard Contract Forum 22 Jul 2008 AOB