1. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 1 21CN Consult IPstream update Tom Saville tom.saville@bt.com December 20 2005 Version 1

2. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 2 Forward looking statements – Caution advised Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities litigation Reform Act of 1995. These statements include, without limitation, those concerning: BT's plans for transformation of its networks; benefits to customers of the 21CN programme; key milestones and expected timetable for delivery of 21CN; and the benefits in relation to, for example interconnect, convergence and broadband. Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual outcomes may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause differences between actual outcomes and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; supplier arrangements; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised.

3. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 3 IPstream transfer engineering Activities currently under review pending upstream product decisions

4. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 4 New IPstream on 21C consultation feedback – initial response To date 7 responses received Please send in you’re replies to give visibility of all your requirements

5. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 5 High level view - extracts EU access priorities  As much as is required to deliver the services that you wish to offer. (What is too much or too little?)  2-way QoS, CoS, Latency & Jitter SLGs  Multiple sessions to multiple destinations delivering multiple applications  Support for bonding Core Network  CoS/QoS throughput determined by Customer on a per EU basis  Traffic monitoring per EU/Application  Full EU profiling end to end with real time modification

6. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 6 BT Centrals  Flexible interconnect at a number of sites  Flexibility in bandwidth and symmetric delivery  Larger bandwidth options Gbit increments  Greater bandwidth management per session / EU to allow for larger flexing of sessions to accommodate triple play applications Additional Network Features  Improved security, virus detection and filtering  Greater point to point application support “inside the network”  Multicast application support locally hosted High level view - extracts

7. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 7 Service Surround  Full migration matrix between all products and between both upstream and downstream portfolios  Improved network statistics and visibility of key components  Downtime, time to deliver, network failure contingencies all to be improved  More detailed EU reporting within Provision and Assurance  Improved fault communications on major service failures High level view - extracts

8. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 8 It is not too late to provide your requirements Please return before 10 January BB/LLU Working Group. Thank You