1. Super-fast Fibre Access Angharad Davies, Policy and Public Affairs, Openreach Openreach makes every effort to ensure the information in this presentation is accurate at the time of compilation, however, Openreach does not represent that it is complete and Communications Providers should check with Openreach for the latest available information. Openreach reserves the right to modify delivery criteria and delivery dates.

2. Meteoric growth in broadband demand… Video services like YouTube, iTunes and iPlayer… Apple has sold 8.5billion songs - that’s 40billion Mbytes of bandwidth 1million O2 iPhone customers - Orange & Vodafone entering the UK market BBC iPlayer is already consuming 12Gb of data every second 17% with broadband watch TV online A 30 minute TV programme requires the same bandwidth as 78,000 average emails

3. Broadband today… - meeting end user expectations Today  More than 99% of the UK has broadband access  62% household take-up of broadband (figures vary)  Internet browsing is the primary use  Mix of broadband access technologies Moving forward Bandwidth Speed Control, choice and flexibility Multiple and multimedia applications Customer experience

4. What the market looks like

5. ONS & BERR, 2009 Telecoms includes: fixed line telephone (line rental, calls and operator charges); Mobile phone - pay as you go and contract; Subscription to the internet; Mobile downloads; Cost of directory enquiries - 54% +61% + 43% +11% UK telecom prices have fallen.. unlike energy and water ….

6. International Communications Market, December 2009, Ofcom; weighted average of best-value tariff from each of the three largest operators by market share in each country, for 600 outbound minutes; July 2009; PPP adjusted. Based on a family of two parents and two children, who are cost conscious and favour using the fixed-line phone whenever possible, which gets fairly heavy use. Includes line rental and cost of purchasing enhanced tariffs that offer reduced prices. UK has the lowest landline prices amongst major countries

7. The Telecom Sector in the EU, Statistics in Focus, Eurostat March 2008 UK is the most important telecoms market in the EU on A number of key measures…

8. Source: Enders Analysis Retail layer - major broadband competitors in the UK

9. OECD Broadband Portal, 2010 Broadband take-up in major economies

10. OECD June 2009 Broadband availability

11. The network today and plans for the future

12. Our mixed economy approach …. Copper – next generation Up to 24Mbit/s Fibre to the cabinet Up to 40Mbit/s with improved upstream rates Fibre to the premise Up to 100Mbit/s with improved upstream rates Mobile Up to 7.2Mbit/s … and beyond Copper – IPstream Up to 8Mbit/s Homes/businesses Plus LLU, cable and satellite broadband services…

13. UK’s biggest super fast broadband investment: £1.5 Billion Accelerated roll-out – 1.5 million by Summer 2010 Fibre To The Cabinet - Speeds of 15 - 50Mbps Range of speeds up to 15mbps and upBasis for nationwide demand led roll out World’s most open super-fast broadband network 2 Fibre To The Premises – Up to 100Mbps (Headline Speed) BT’s bold fibre vision for the UK

14. * * North Wales NGA Rollout …. so far

15. * * South Wales NGA Rollout …. so far

16. Exchange Areas by WBC Rollout Phase only showing exchange areas within Wales WBC rollout to March 2010

17.  Including Cardiff, Swansea, Newport, Aberdare, Aberystwyth, Pontypool, Bangor Wrexham & Merthyr Tydfil 24 Up to nodes Subject to market demand Ethernet node deployment – showing BT Wholesale Ethernet Ethernet …. so far

18. Decision time – the policy context

19. Political stakeholders

20. Wales…. (DCLG report – NGA Risk)

22. Back up slides

23. Unbundled Exchanges Red: unbundled exchange areas Green dots: fibre customers

24. Fibre network Green dots: exchanges Red dots: customer fibre locations

25. Long-lines (over 5.5 km)