1. Delivering world-class capabilities for Digital Wales Skills for a Global Economy 13 May 2014 Ann Beynon – Cyfarwyddwraig BT Cymru/Director BT Wales

2. How does BT know what is happening in the global economy? It invests in innovation. www.telecomtv.comwww.telecomtv.com has scouts in key markets. BT has partnerships with cutting edge universities e.g. Cambridge, MIT and Tsinghua. Views from the Valley, Innovation Champions, Innovation Challenge. Continuous market scanning and analysis. Customers across the globe (e.e. Fiat, Unilever)

3. IT sector growth 2013 Spending 2013 Growth (%) 2014 Spending 2014 Growth (%) Devices6952.87406.5 Data Centre Systems1432.11494.1 Enterprise Software3046.43246.6 IT Services9262.29684.6 Telecom Services1,6550.91,6942.3 Overall IT3,7232.03,8754.1 Worldwide IT spending forecast (billions of US dollars) Source: Gartner (July 2013)

4. © British Telecommunications plc 4

5. 5 EU and UK Digital Agenda. Clear Challenge  Basic broadband for all by 2013  Fast broadband by 2020. 30mbps or more for 100% of EU citizens.  Ultra fastbroadband by 2020: 50%of European households should have subscriptions above 100Mbps.  2010/June 2010 UK govt target: to have “the “best” superfast broadband network in Europe by 2015.”  UK govt target: “ not just the best, but specifically the fastest broadband of any major European country by 2015.”

6. © British Telecommunications plc 6 Global Coverage Comparison  UK closing the gap on US and Asia  Set to be amongst world leaders by end of 2018 Source: Analysys Mason November 2013

7. © British Telecommunications plc 7 Usage measures

8. © British Telecommunications plc 8 Getting this right drives the economy  “Broadband boosts growth. 10 percentage points extra penetration means 1% to 1.5% more GDP growth”. - Neelie Kroes  “Fibre broadband could generate an annual increase in Gross Value Add (GVA) of 0.3% - 0.5% per annum over 15 years” - Regeneris 1 1 Source: “Superfast broadband – boosting business and the UK economy”, Regeneris, 2012

9. © British Telecommunications plc 9 McKinsey Global Institute – “Internet matters 2011” Study focused on Sweden, UK, South Korea, Japan, USA, Germany, India, France, Canada, China, Italy, Brazil, Russia ► In last 5 years, the Internet accounts for 21% of GDP growth in mature countries ► 2.6 jobs created for 1 job lost ► 75% of internet impact arises from traditional industries – more productive, created more jobs ► 10% increase in productivity for SMEs from internet usage ► SMEs using WEB technology HEAVILY GROW and EXPORT TWICE as much as others. ► Internet usage creates consumer surplus

10. © British Telecommunications plc 10 WG Digital Strategy

11. © British Telecommunications plc 11 The digital infrastructure

12. © British Telecommunications plc 12 www.superfast-cymru.com Roll-out Adding to BT’s commercial roll-out - part of a £2.5bn investment in fibre based broadband across the UK - Superfast Cymru builds on BT’s significant commercial investment Roll out the most cost effective broadband network benefitting 96% of Wales and 95% of rural Wales at speeds in excess of 24mgbts. SFC roll-out priorities defined by Welsh Government - economic eg Enterprise Zones & Local Growth Zones - Social eg help with digital exclusion Approach - rural and urban deployment at the same time - business and consumer at the same time A massive engineering project - corresponding to five Millennium Stadiums or two Cardiff Bay barrages - 17,500kms of optical fibre - 3,000+ new fibre broadband cabinets

13. www.superfast-cymru.com Programme Aims Put Wales in the top 10 of fibre penetrated OECD* countries Assist economic growth so that businesses can – Acquire new customers by marketing digitally – Developing new services or sell on-line for the first time – Use productivity improvements eg videoconferencing or audio calls with remote colleagues and home working can be more time efficient than travelling – Improve security as cloud computing becomes a possibility Create sustainable jobs - new business opportunities create jobs - support skills and training for school and adult learners - reduce the need to commute through home working Social inclusion - people without access to broadband today need access to cheaper online services, benefit claiming and job seeking. *Interpreted from OECD Percentage of fibre connections in total broadband among countries reporting fibre subscribers, December 2011

14. www.superfast-cymru.com Jobs and training BT committed as part of this contract to creating 50 new jobs in Wales and recruiting 100 apprentices. In reality BT has created 247 posts of which 104 can be directly attributed to SFC, and has reached the apprentices target. BT also committed to providing 300 week long work experience opportunities for young people annually for three years. 440 young people have already been through the programme.. During this period BT will continue to recruit graduates into its global software development centre (GDC) in Cardiff Bay. BT people are encouraged to volunteer. The volunteering can range from raising money for good causes to supporting training and skills development.

15. BT’s view of Employability, Skills and Diversity requirements Key Stage 1 & 2 FindingDevelopingShaping BT Ymwneud ag ysgolion Education Engagement Gwirfoddoli yn BT volunteersPartneriaeth Ymchwil Prifysgol/ University Research Partnerships Datblygu sgiliau, prentisiaethau a datblygu graddedigion Skills Development: Apprenticeships & Graduate Development Key Stage 3 & 4 Further Education Undergraduate Post-grad Cyflogaeth/Employment Volunteering Critical transition points for girls Pwynt allweddol i ymrwymo merched

16. © British Telecommunications plc 16 BT4Me- apprenticeships  Customer Design and Support – typical type of role; Office/screen based technical and support functions. Minimum qualifications 5 GCSE’s A-C grade including Maths, English and IT or science qualification. In addition 2 A levels A to C.  Customer Engineering and Delivery – typical type of role; Hands on engineering. Minimum qualifications, 4 GCSE’s A-D grade including Maths and English.  Customer Handling and Management Customer contact and service centre roles. Minimum qualifications 4 GCSE’s A to C grade including Maths and English

17. © British Telecommunications plc 17 BT’s graduates programme  What We Look For?  You must have:  At least a 2:1 degree (or be on track to get a 2:1 when you graduate). If you have a postgraduate degree, we'll accept a 2:2. For Technology we will also accept a 2:2 if you have 320 UCAS points.  At least 320 UCAS points from your top three A levels (we'll accept the equivalent qualifications from other countries), not counting General Studies or AS Levels. If you have 280 UCAS points, you can apply for our technology programme.  Fluent English.

18. © British Telecommunications plc 18 And…..  Integrity  Leadership  Team Spirit  Communication  Multitasking  Creativity  Enthusiasm

19. Conclusion  ICT is a key global growth market.  It forms the basis of growth for all sectors.  Wales will have a digital infrastructure that will be world class. – better than Japan by mid 2016.  All sectors of life will be impacted by the digital tsunami.  Skills in ICT, MTEC, coding will be essential across the board.  Wales has to be as digitally enabled in terms of its skills and capabilities as the best in class to compete.  Are we doing enough?  Are we doing it with pace and urgency? 19

20. Diolch yn fawr Thank you.