1. Current thinking. Subject to change. October 2011 BENEFITS OF BUILDING AN IN-HOUSE CONTENT DISTRIBUTION NETWORK (CDN)

2. Current thinking. Subject to change. CONTENT SERVICES FROM BT WHOLESALE BT owns & manages the largest communications network in the UK Provides a wide range of digital media distribution services to the entertainment industry - for 50+ years Media services incorporate BT Media & Broadcast, BT agilemedia & BT Wholesale Content Services Introducing a new approach to content distribution & delivery - developing broadband as a TV platform Content Connect (CC) - a CDN built to address exponential growth of broadband video traffic

3. Current thinking. Subject to change. BT WHOLESALE & ISP BROADBAND MARKET Broadband Subscriber NumbersQ4 2010 Total Broadband Subs19,620,484 BT Wholesale (DSL)7,979,755 LLU Lines7,489,629 Virgin Media (DOCSIS)4,011,100 Other (Kingston etc)140, 000 ~ 19.5 million UK broadband lines BT Wholesale provides broadband: –to around 8m UK homes & businesses –to 600+ fixed & mobile operators & ISPs –BT investing £2.5bn in fibre & continuing to roll out advanced copper broadband –broadband services provided on an open wholesale basis (Source: Enders Analysis)

4. Current thinking. Subject to change. MARKET CONTEXT INTERNET VIDEO TRAFFIC CONTINUES TO RISE IN UK AND AROUND THE WORLD BBC iPlayer reported 90m online TV content requests in September 2011 Virgin Media BBC iPlayer TV requests were an additional 23m Ericsson believes IP video will grow to over 90% of network traffic in the next few years Cisco predicts global internet video will increase from 2.7 to 19.5 exabytes (1m larger than terabyte) by 2014 PROLIFERATION OF INTERNET ENABLED DEVICES DRIVING CSP/CDN STRATEGY Redshift research found 35% of UK viewers watch more TV on mobiles than 2 years ago Content Providers use multiple CDN partners for greater reach, burst and economic benefits The rise & range of connected devices offers Content Service Providers increasing options to reach their customers

5. Current thinking. Subject to change. Content Connect ~8.3m BTW Users StandardPremium Standard: enables ISPs to present content to BT for caching within BT Wholesales broadband access network to participating ISPs end users Premium: provides advanced quality of service within the broadband access network to assure delivery to end users BT WHOLESALES CONTENT CONNECT FAMILY

6. Current thinking. Subject to change. … TO ADDRESS NEEDS OF ISP & CSPs ALIKE - Achieving full UK broadband coverage for all CSPs Priority Delivery CC PREMIUM Quality of Service ISP Network Product CC STANDARD Superior delivery Features & Capability Timeline Offering network bandwidth & core CDN services via IP address management Serving video content within ISP networks Standard: Through the network delivery Premium: QoS Premium in addition to Standard

7. Current thinking. Subject to change. ISP Network 21CN CC Content Caches CC Premium Backhaul DSL CC Standard MSAN Traditional Internet CDN traffic flow BR AS WCC Origin Server CSP Origin Server ISP Origin Server WWW (Internet) CONTENT CONNECT ARCHITECTURE

8. Current thinking. Subject to change. A DEDICATED SERVICE PORTAL FOR PARTNERS Developing a secure destination zone for Content Connect partners to manage their business Content management, cache deletion… Skytide insight for performance, reporting & analytics across all ISPs Ability for ISPs to view volume & actual content (url) delivered by CSPs Fault management & help features Service management & training Access to billing information Network status visibility All under one wholesale.com security & authentication wrap

9. Current thinking. Subject to change. BT WHOLESALE CONTENT CONNECT BROADBAND VIDEO DISTRIBUTION FOR UK PARTNERS BT sees broadband as a video delivery platform & a viable complement to DTT, Cable or Satellite A NETWORK CDN Deployed deep in BTs network A QUALITY USER EXPERIENCE CC Assured provides traffic prioritisation in the broadband access network delivering a predictable & consistent user experience TRANSFORMING THE COMMERCIAL MODEL Establishing a new commercial model for content delivery which brings the ISP into the ecosystem & offers greater choice for CSPs INSIGHT AND OPERATIONAL SIMPLICITY A single reporting portal for deeper audience & operational insight with industry leading reporting system from Skytide

10. Exchanges BT Wholesale Broadband, data, voice Managed network services Homes/businesses THE UK WHOLESALE MARKET Copper Openreach Access products (LLU, WLR, GEA, Backhaul) Copper Fibre

11. Current thinking. Subject to change. THANK YOU