1. Title Consult 21 Mike Reed - Openreach Name 21 st February 2006

2. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe 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. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 3 Ongoing Actions LLU/11/2 Space & Power (list of effected exchanges) Although not appropriate to Consult 21 but as part of its implementation of section 7 of the Undertakings published on 22nd September 2005, BT has created an ‘Estimated Space Availability’ list on the LLU Controlled Website:- http://www.btinterconnect.com/llu/lluindex.htmhttp://www.btinterconnect.com/llu/lluindex.htm Customers may use this to record interest proactively by advising BT of their future requirements using the spreadsheet, an extract of which is shown below.

4. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 4 Ongoing Actions LLU/11/4 Space & Power - SNAP Clarification (Single Network Accommodation Process) Again although not sure why this issue has been raised at the Consult21 forum but in an effort to clarify the existing process the following still stands:- BTW’s position is to ensure that all customers are 100% satisfied with the way that BTW deals with their LLU or Co- location customer orders. LLU orders and MSAN - “orders are given exactly the same priority and the same criteria applies to both” this being:- –1 st order in, 1 st order out and all are time & date stamped on receipt –There will be no queue jumping and currently no plans to change this process CPs should contact BT if at all unhappy with response on Space or Power at any location to arrange a site visit.

5. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 5 Ongoing Actions LLU/11/7 - Activity Freeze pre and post Migration The Transfer Engineering is owned by BTWS and as explained at the last forum an activity freeze pre migration is currently planned to be 12 hours at each site with a migration test post migration then the freeze lifts providing the platform is stable. All communications will be made to CP’s from the TE Migration Control Centre this will include the Go or No Go decision and details about the freeze. All order activities will cease whilst the freeze is on however unless unforeseen circumstances dictate, LLUO’s should still be able to access their equipment. LLU/11/8 - Migration and all Broadband products The Migration plan is owned by 21CN Team but in terms of equivalence there is no change to the current position for LLUO’s in terms of Space, Power Arrangements, Products & Connectivity to the MDF via Tie Cables. The only caveat to this is that there is a natural desire is to avoid variable solutions and if at all possible develop a single Line Test System interface for all MPF and SMPF connections. A number of alternative schemas are being investigated but the final decision has not yet been taken. The default fall back is “No Change” and if or when that changes the details will be shared.

6. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 6 Ongoing Actions LLU/11/9 - Roll Back and LLU If Roll Back were to be required for any reason we would expect LLU to be restored to the 20CN arrangements that existed before however, as highlighted in the previous slide, the only unknown caveat at present is the access to line test equipment. LLU/11/12 - Bilaterals on Testing Openreach do not believe the requirement from CPs/SPs/ISPs for bilaterals on CPE Testing for 21CN to be a requirement for LLU as no change to LLU service is expected. Therefore it is assumed this requested is for compatibility checks with 21CN BT Wholesale products only.

7. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 7 LLU on 21CN – No change Current BT PositionNote Service StructureWill not changeGeneral note – The information in this table is valid according to current BT structures. When openreach is fully established, some points may be subject to review Physical InterfacesWill not changeLLU products will be managed out of openreach. No changes to physical interfaces are foreseen. Customer Ordering Systems Customer Billing Systems Customer Repair Systems 21CN network upgrade will not change customer facing systems Systems developments on LLU are being discussed within LLU Industry Group Some underlying BT back-end systems may change as part of 21CN network migration but CPs will see no change as the CP interfaces will not change as a direct result of 21CN. Specific work is ongoing to develop B2B Gateway and GUI Portal Customer Ordering Systems for SMPF and MPF as replacements for existing Tactical systems. Pricing, Commercials and Documentation Will not changeLLU pricing reviews and revisions are part of BAU. There is no specific 21CN-related pricing impact identified.

8. Consult 21- Information is subject to change and is for discussion purposes only. Dates and timescales are those anticipated and maybe subject to change. 8 LLU General Update EMP (Equivalence management Platform) phase1 has experienced some problems with Acceptance Testing which we are working hard to resolve and have therefore suspended further inputs until solutioned. Although disappointing, but maybe not surprising with a huge system deployment of this size, this event gives justification for our decision to adopt a phased approach to this programme. We are optimistic that the phase 1 position will be recovered by 27 th February and anticipate no adverse effect on the phase 2 date of 30 th June. Be assured in the future that all tactical systems will remain in place until all migrations are complete and the new platform is stable.