CPS LOCAL EXCHANGE CALLS BT WHOLESALE UPDATE 2 SEPTEMBER 2004 TIM HOWSON PRODUCT DEVELOPMENT MANAGER The information in this presentation does not form part of a contract

AGENDA BACKGROUND PROJECT TIMELINE FULL SOLUTION INTERIM SOLUTION

BACKGROUND CPS design recognised from inception as inefficient for same exchange calls (tromboning). Ofcom Statement published 30 th July 2004: BT now asked to keep these calls “on-net” and bill CPSO accordingly. Dependent on CPSO build-out to DLE New Product Variant – “CPS Local Exchange Calls” New Industry Working Group established – Same/Adjacent DLE IWG

BACKGROUND Call routing used by BT Retail Call routing used by fully interconnected CPSO BT DLE CPSO Switc h Own local exchange calls BT DLE CPSO Switc h BT DLE Adjacent connected local exchange calls

PROJECT TIMELINE 2005 Contract & DMA Dates tbc AXE 10 Activation 18 Mar – 31 Mar* System X Main Activation 1 Apr – 30 April* System X Residual Activation 2 May – 31 Oct* EBC Cycle 1 Apr EBC Cycle 1 Jul EBC Cycle 1 Oct EBC Cycle 1 Jan 100% 25% 50% 75% 0% 35% lines 92% lines 100% lines * These are planned dates

FULL SOLUTION Two Main phases plus one “Mop-Up” Phase BT will be discussing new contract with SAD IWG late October CPSO’s will need to “opt-in” to full solution on per DLE, per CPS Code basis. Revised DMA process and timescales to be offered for this “on-boarding” CDRs to be made available for fraud prevention and billing purposes, c.f. Wholesale Calls & Wholesale Access

INTERIM SOLUTION BT has identified those CPS calls over DLE interconnects that would qualify for the new product variant. BT will be issuing credit notes against same/adjacent connected DLE calls meeting above criteria – against the cost disadvantage as seen by Ofcom. Credit notes will be issued monthly from September, backdated to 1 July Interim Solution will continue until CPSO takes full solution on particular DLE under roll-out plan. BT has published an amendment to the Carrier Price List and issued a briefing to explain this in more detail.