1 21CN programme overview THE UK COMMUNICATIONS INDUSTRY MIGRATION CAMPAIGN Tim Wright BT Wholesale The dates and other information about BT's 21CN programme in this presentation are based on the best information currently available. As in any programme of this size and complexity, they may be subject to change

2 INTRODUCTION The purpose of this presentation is to explain: –Why BT is introducing the 21st Century Network –What this means to the telecommunications industry and to the UK –How the network is going to converge and change fundamentally –When it will take place and the preparations involved –How the UK telecommunications industry is involved The intended audience is: –Communication Providers (CPs) and Resellers

3 Convergence Regulation Customer expectation Technology Merger & acquisition activities Cost transformation WHAT IS HAPPENING IN THE MARKETPLACE…

4 “Technology is not kind. It does not wait. It does not say please. It slams into existing systems. Often destroying them, while creating new ones” Joseph Schumpeter (1937) For example……. Since the invention of the microprocessor, the cost of moving a byte of information around has fallen on the order of 10-million-fold…… That's as if a 747 plane, once at $150 million a piece, could now be bought for about the price of a large pizza Putting it into context…….

5 A RADICALLY UPGRADED NETWORK Upgrading communication services –Across the UK, homes and businesses are being connected to BT's new nationwide next-generation network –This network is based on IP – Internet Protocol –It allows a much greater volume of information to travel through the network more quickly Telecoms industry partnership –Alternative next-generation networks already operate successfully in the UK –BT's introduction of a new next-generation network is a great example of collaboration across the industry

6 NEW OPPORTUNITIES Opening the door to the future –Businesses are increasingly expecting more of their IT and communications services –People are used to using the Internet and communications on the move – now we can make the communications more joined- up and intuitive The products and services of tomorrow –Businesses will soon be able to benefit from a new range of products and services enabled by BT's next-generation network and developed by a whole range of telecoms suppliers –21CN means your customers will soon be using BT's robust, reliable network with the ability to manage new types of data in the future

7 WHO WILL IT AFFECT? Every end user and businesses that have a BT line End users won't be directly affected by the rollout of BT's new telecommunications network if they are connected to a cable service are a customer of Kingston Communications in East Yorkshire or do not require a BT line for their phone, broadband or ISDN services –In these instances, their current telecommunications arrangements will continue to apply –Mobile services will not be directly affected

8 BT’s CURRENT UK NETWORK IP ATM PSTN DSL KStream PSTN Leased lines PDH Fibre Copper SDH access PDH access End User ~5.5k sites ~2k sites ~300 sites ~100 sites ~15 sites MSH -SDH ~1k sites SDH VC-12 PDH access SDH VC-4

9 21CN – BT’s SIMPLIFIED UK NETWORK IP-MPLS-WDM DSL Fibre & Copper Agg Box End User ~5.5k sites ~100 sites Class 5 Call Server Content WWW ISP Multi-service access Converged core Wireless

10 21CN RELIABILITY AND RESILIENCE 21CN - a private IP network 21CN - a well designed, highly resilient network 21CN - a secure, safe network BT is vastly experienced in managing traditional and IP-based networks

11 PREPARING FOR GOING LIVE Voice transformation trial Strategic solution lab testing Customer equipment compatibility testing Strategic solution deployed in South Wales Service provider testing End customer communications Integrated system and process testing Exchange migration process testing

12 Our goal = seamless customer transfer to 21CN WHAT ‘MIGRATION’ ENTAILS - Detail will be covered on webcall on 2 May All BT equipment tested prior to “migration night” Transfer of lines to 21CN during “quiet hours” Short break in service during line transfer Non-emergency calls and broadband sessions in progress will be lost No break in emergency calls in progress No change in way customers make and receive calls or use broadband No perceptible difference in look or feel (ringing tone, etc) Transfer completion Configure and verify Prepare the network On the night migration Monitor

13 PLANNING THE UK ROLLOUT Industry agreed rollout plan to get 21CN across the UK in the quickest possible way Industry is working hard to ensure smooth end user migration Topology of the network, there is a logical order for tasks Broadband –To maximise the early end user footprint and to drive the UK economy –Up to 24Mbit/s broadband available to around half the UK early in roll- out PSTN –Replacement of older equipment first –Rural exchanges migrated with urban neighbours

14 21CN END USER MIGRATION PROGRESS PSTNBroadbandBoth 2011

15 TIMETABLE UPDATE: SOUTH WALES Apr/May/June 07July/Aug/Sept 07Oct/Nov/Dec 07Jan to June 08 Wick and Bedlinog for voice (non ISDN) Migration of voice (non ISDN) on next 12 exchanges (58,000 lines) Migration of voice (non ISDN) on next 55 exchanges (290,000 lines) Broadband Migration trial in West Midlands July to Dec 08 South Wales Industry review period ISDN2 & 30 Migrations ISDN Trials

16 TIMETABLE UPDATE: OVERALL PROGRAMME First stage of migration for POTS (South Wales) 2007/08*2008/09*2009/10*2010/11*2011/12* National Migration Begins (Broadband lines initially) National Migration (Voice, Broadband and ISDN) National migration (voice, non ISDN) New enhanced testing capability available for industry service testing ISDN 2 and ISDN 30 (South Wales) * Periods indicated are financial years, April to March.

17 FIRST CUSTOMERS GO LIVE – 28 NOVEMBER 2006 The first customer migrations began on 28 November in Wick, near Cardiff The ‘switched-on’ process officially launched at the local primary school in Wick where 11 year old Laura Wess made the first call on the new network –This upgrade, which took place without the need for an engineer visit, new telephone or a new telephone number, is part of the first phase of the national rollout programme Customers in Cardiff, Bridgend and the Pontypridd area will be the next to have their voice and broadband services transferred By the end of 2007, around 350,000 lines in South Wales are expected to have been migrated to the new infrastructure

18 KEY MILESTONES ACHIEVED First end users customers migrated – Tuesday 28 November 2006 at Wick, South Wales More than 100 million calls already carried over the IP link between Woolwich and Cambridge Around 300 BT employees are making calls between 18 MSAN sites in the South East We have rebuilt 20 percent of the core national infrastructure and expect to complete that work by end March 2008

19 INDUSTRY CONSULTATION Why consult? –To maximise the benefit of 21CN: To deliver a great network with great products and very satisfied customers –To minimise implementation risks Consult21 objectives –Ensure industry is aware of the 21CN vision and BT’s progress towards it –Achieve a shared understanding with industry on 21CN –Ensure industry has an opportunity to influence 21CN development

20 WHERE CAN THE INDUSTRY GET INVOLVED? There are three main areas: –Build your own awareness of the 21CN programme and understanding of where the programme will affect you and your customers –Establish what specific activities you need to plan and prepare for within your own organisation –Through your own account management teams ensure that your own customers are suitably briefed on the 21CN programme – from benefits to the specific impacts of the migration process Help is available to you –We can work with you to help brief account managers’ on the process of migration, the impact on business and consumer customers and advise where action needs to be taken at each point in the process –This offer of support is available to all communication providers –In terms of format this could involve presentations in workshops, events and calls as required and/or the supply of useful materials to help build this knowledge –In addition, there are a number of websites and databases that provide background information for communication providers and these are detailed at the end of the call. Finally this is the first of a number of webcalls planned to build more in-depth awareness of the 21CN programme

21 The UK communications industry migration campaign

Switched-on communications campaign - Detail will be covered on webcall on 31 May Aims –Inform customers about the migration –Ensure that customers feel a sense of reassurance –Build a sense of anticipation for what the new network will enable –Be inclusive and representative of the whole industry The campaign will target consumers and small and medium sized businesses; CPs will communicate with corporate customers directly Switched-on is not commercial and is not designed to give any single provider a competitive advantage; it will not communicate any new services or benefits enabled by the new network for BT or any other CP Ofcom is involved in and supportive of this activity

23 WEBCALLS Update 18 AprilProduct retirements 24 April21CN overview 2 MayMigration process 22 MayCPE compatibility testing programme 31 MaySwitched-on communications campaign 27 Sept Migration portal overview

24 RESELLERS PROGRAMME Events Update – proposed dates w/c 17 SepThree events: London West Midlands Scotland

25 SOURCES OF FURTHER INFORMATION Information and support for communication providers on the 21CN programme: The independent public information website covering the process of migration: For general information about BT’s 21CN programme go to:

26  Answers Questions