PPC Industry Forum, 03 December 2009

Managed Bandwidth Services BTW Products and Strategy Disclaimer BT has taken reasonable care to check that the information contained in the following slides was accurate at time of publication. Any price indications or timescales contained within this presentation are estimates for information purposes only and do not constitute any contractual or other obligation. In relation to any products/services referred to in this presentation which are currently under development and/or trial, BT gives no undertaking or other commitment that the product/service will be made commercially available BT reserves the right to make changes to the information in this presentation at any time without further notice Exclusive reliance on the information in this slide pack is at your own risk Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Agenda Introductions – All Efficient use of PoH Infrastructure - John Morden/Ed Pigott 21C Update-Becky Hewlett Wholesale Customer Reporting (WCR) Demo-Sheila Mason/Mitesh Tailor Review of previous actions– Leslie Hurrell-Smith Product Development Update– Pauline Cowie Product In Life Update – Jeneva Hibbert QoS Reports Communications/Notifications BCMR Update AOB – All Forum Review -Leslie Hurrell Smith Date of next meeting - All Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Industry Forum Introduction

business unit (for internal use only) / url (for external use) PPC Industry Forum PPC Point of Handover Pricing 3 December 2009

Managed Bandwidth Services BTW Products and Strategy Background The basis of the new PoH pricing was set out in and of the Leased Lines Charge Control Statement dated July The third alternative set out in was “Introduce a cost recovery mechanism that would incentivise migration to new, aggregated PoHs. Under this approach, circuits handed over new PoHs would not attract the separate new PoH charges we are imposing. This would incentivise CPs to migrate to the new efficient PoHs as it would allow them to reduce (and ultimately avoid) the new PoH rental charges. Of the three further alternatives we discussed above, BT has proposed to implement the third one. We expect BT to implement this within three months following implementation of the charge controls.”

Managed Bandwidth Services BTW Products and Strategy Progress of Consultation Following the Ofcom Statement, BT has met with Industry twice to discuss the proposals: a)At an Industry meeting on 21 th August, where the pricing approach was first explained to Industry, and early indicative prices shown. b)At a PPC Industry Forum on 17 th September 2009, improved illustrative prices were presented. A set of proposed prices were communicated to members of the PPC Industry Forum on 27 th November To date BT has received no formal response to its proposals.

Managed Bandwidth Services BTW Products and Strategy How prices were calculated a)Number of PPC Muxes used for Point of Handover identified b)Volume of PPCs handed over Points of Handover measured using July 2009 data c)The number of 64k and n64k PPC circuits handed over aggregate 2M bearers was identified using data from November d)The total cost of PPC 3 rd Party PoH charge was calculated for these circuits and divided by the volume of PPC muxes to get an underlying charge per mux. e)The calculation was stratified by Mux size. f)The resultant charge by Mux is consistent with the per circuit charge and is an Industry average.

Managed Bandwidth Services BTW Products and Strategy How new pricing will work The charge will apply to each PPC point of handover SMA mux. Charges will apply to both PPC PoH and former Retail PoH that have been redesignated as PPC PoH. All PPC circuits delivered over the PoH will have the 3 rd Party PoH Rental charge dis-applied. This includes the charge for 64k and n64k PPCs delivered over aggregate bearers carried over the PoH mux. 3 rd party PoH charges will continue to be charged on those PPC circuits that are not handed over at a PPC PoH. Operators can reduce their PoH costs by achieving an improved fill rate on their PoH, rewarding improving efficiency with lower aggregate PoH charges.

Managed Bandwidth Services BTW Products and Strategy Proposed Point of Handover price: Indicative Prices at September Industry Forum Proposed Prices Rental p.a. (£) SMA – 16,8176,192 SMA – 411,19710,837 SMA – 1614,60513,643

Managed Bandwidth Services BTW Products and Strategy Practical Details Systems development work - Q1 2009/10 (January to March 2010) Live billingQ2 2010/11 (April to June 2010) There are additional costs that CPs will bear resulting from the rearrangement of these circuits. (This is set out in of the Ofcom Statement).

Managed Bandwidth Services BTW Products and Strategy Next Steps Any responses to these proposals to be made formally to BT in writing. Reponses can be made to Product Line (Pauline Cowie or Jeneva Hibbert) or through Account Team. The closing date for responses is 5pm on Friday 8 th January BT and Communications Providers to work together to develop necessary systems to implement new pricing proposals. This work must be completed in Q4 2009/10 (January to March 2010). BT to formally notify new product and prices on Carrier Price List with usual notice periods.

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits 21CN Update

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Wholesale Customer Reporting (WCR) Sheila Mason / Mitesh Tailor

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Review of Previous Actions (in conjunction with Action List)

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 04/12 (04/12/08) RFT T2R Initiatives Presentation: Validation Rules

Managed Bandwidth Services BTW Products and Strategy Action Point 01/03 (05/03/09) Exchanges taken off the Closure List Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 04/06 (04/06/09) Provisioning Stats – Inclusion of Provision against Customer Required by Date (CRD) Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 05/06 (04/06/09) Provisioning Stats – Requirement for Mean Time to Provide is shown in Working Days instead of Calendar Days Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 06/06 (04/06/09) Repair Stats – Matters Beyond Our Reasonable Control (MBORC) Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 09/06 (04/06/09) Excess Construction Charges (ECC) 1)Mapping Service 2)Identification of costs for dual provision at same site Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 10/06 (04/06/09) Excess Construction Charges (ECC) 1)£350 Planning and Admin Charge 2)Copper Out of Limits Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 01/09 (17/09/09) Central Birmingham Zone (CBZ) Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 02/09 (17/09/09) Birmingham Metro Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 03/09 (17/09/09) Enhanced Care Plus (EC+) Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 04/09 (17/09/09) B End Shift Price: Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 05/09 (17/09/09) BCMR SLG: Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 06/09 (17/09/09) SLG Payment Reports Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 07/09 (17/09/09) Central London Zone (CLZ) Exchange Review Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Action Point 08/09 (17/09/09) PPC CP2CP Managed Move Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product Development Update

Managed Bandwidth Services BTW Products and Strategy PPC Development Roadmap Q4 2010/11 Q1 Q2 – Q3 Rapid Restore – Go/No Go 9 Dec 2009 High Band FOC Improvement Q4 Leased Line Charge control – Final Doc Received 2 nd July 09 High Band FOC Improvement Cust, Trial Q2 – Q4 Leased Line Charge Control – Rental Prices Implementation 1st Sept 09 CP to CP Managed Move - Tactical 14 th Sep 09 Birmingham Reduced Lead Time 27 th July 09 PPC Contract Review 1 st Oct 09 BCMR Aggregation Node Phase 3 March 2010 Enhancecare Plus (Fibre) 1 St Oct 09 Leased Line Charge Control – Infrastructure & PoH Prices Implementation 1 st Oct 09 BCMR Aggregation Node Phase 2 Q2 – Q3 3 rd Party Infrastructure Sharing Withdrawn B End Shift Charge TBC Term Discounts TBC 2009/10 Q2 Q3 CP to CP Managed Move - Automated 18 Dec 09 Enhancecare Plus (Copper) March 2010 Ethernet over TDM 30 March 2010 Geo Lead-Time Reductions Metro Access 30 Days Q1 PPC Price Control RPI-X 1 October 2010 PPC Annual Price Control Review RPI-X 1 March 2010 CELA Discount February 2010

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product In-Life Update QoS Reports Communications & Notifications Business Connectivity Market Review (BCMR)

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits QoS Reports

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision– Early Life Failures (ELF)

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision to Customer Required by Date (CRD)

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision – Mean Time to Provide

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats - Chart

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair Stats

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair – Repeat Faults

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Mean Time to Repair – Including Intermittent Faults

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Mean Time to Repair – Excluding Intermittent Faults

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits –Repair Stats - Chart

Managed Bandwidth Services BTW Products and Strategy Communications: 012/09PPC Contract Review Completion Notification – 23/09/ /09PPC Data File – 30/09/ /09PPC Excess Construction Charge (ECC) Mapping – 14/10/ MBORC declaration due to recent severe weather – 23/11/2009 Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Pricing Notifications: No price notification since last Industry Forum Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy BCMR Update Phase 1 – Completed to meet 1 April 2009 Phase 2 - Completion of amendment to existing circuit as at 8 th December Adjustment made to circuit inventory bill affecting wef 1 st September 09 Phase 3 - Distance adjustments to circuits moved or ceased between 8 th December 2008 – 31 st April 2009 Pricing Adjustments to 8 th December 08 in progress, target completion March 2010 Partial Private Circuits

Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits A.O.B Feedback on PPC Comms & Website.

Managed Bandwidth Services BTW Products and Strategy Forum Review Next Meeting Scheduled 4 March 2010 Venue: TBC Partial Private Circuits