1. PPC Industry Forum, 1 st March 2007

2. Managed Bandwidth Services BTW Products and Strategy Disclaimer BT has taken reasonable care to check that the information contained in the following slides was accurate at time of publication. Any price indications or timescales contained within this presentation are estimates for information purposes only and do not constitute any contractual or other obligation. In relation to any products/services referred to in this presentation which are currently under development and/or trial, BT gives no undertaking or other commitment that the product/service will be made commercially available BT reserves the right to make changes to the information in this presentation at any time without further notice Exclusive reliance on the information in this slide pack is at your own risk Partial Private Circuits

3. Managed Bandwidth Services BTW Products and Strategy Agenda Review of previous actions – Pauline Cowie/All Presentations – EAB Update – Bob Day Pricing Tool Update – James Dewing Product Development Update – Pauline Cowie/All Product In Life Update – Pauline Cowie/All QoS Billing Communications Third Party Equipment Re-Use Regulatory Update – Kath Embleton COLT’s SOR – Gordon Robinson AOB - All Date of next meeting - All Partial Private Circuits

4. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point Review

5. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/1 (01/12/05) – “BT to investigate the inclusion of eCo Repair in the data quality monitoring on the One Truth Data Base” Due to continued EOI work, which is given priority over other developments, no date for the alignment of eCo to the PPC OTDB is available.

6. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 3/5 (02/03/06) – “BT to review the breakdown of charges of the different shift charges on the CPL, and look into the possibility of retrospection if appropriate” Closure date for Retrospection claims 31 Jan 07 Those Retrospection claims received from industry are being validated. Payment is expected 1 st Qtr 07/08 financial year.

7. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 6/8 (08/06/06) – “CPs believe CDDs are being pushed out and asked for this to be clarified in the Handbook. BT were also asked to look into the possibility of a process which allows quicker delivery when possible” Handbook under review and clarity will be given to when CDDs can be extended. CPs to provide BT with examples where CDDs are being pushed out without their agreement. BT to investigate on receipt of examples.

8. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 6/9 (08/06/06) – “Product Handbook – When will the changes be made” Interim revision made based on Industry’s feedback. Product Line revising Handbook based on feedback received. Revision due for distribution to Industry mid- March for agreement.

9. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 9/1 (08/09/06) – “How many times is ‘Stop the Clock’ initiated because of a 3 rd Party customer issues e.g. refusing access? Data to be fed back via the Service Reviews” ReasonPercentage CP Customer/ Site contact not available or no contact0.22% CP Site Not Ready (Building or Cabinet etc)1.74% CP Site Access not available1.60% 3rd Party Customer/ Site contact not available or no contact20.20% 3rd Party Site Not Ready (Building or Cabinet etc)9.47% 3rd Party Site Access not available18.66% All reasons including access (CP and 3rd Party)100.00%

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11. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/1 (07/12/06) – “Wolverhampton CMC have asked CPs to provide circuit IDs of A Ends to begin provision process, but SNEiD is already provided to the CMC and should suffice. BT to check why this is requested” This request is due to a change in the ISH provision process to overcome issues whereby BT occasionally bill ccts from the CP’s POH rather than the BT Exchange. To ensure the right information is gathered up front and both parties agree the address of the SNEID, which should follow through to correct bills being generated.

12. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/2 (07/12/06) – “Do BTW provide wholesale variants of Defence Private Services, and if not, can these be developed as a service for CPs to take?” BT Wholesale do not provide Defence Private Service variant. To evaluate whether a BT Wholesale product is possible BT requests CPs submit their requirement as an SoR.

13. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/3 (07/12/06) – “CPs requested that BT initiate a process to communicate closure of exchanges to CPs as and when this happens, as this only happens from an LLU perspective” Current: CPs notice of Exchange Closure minimum of 6 months Notification posted on LLU & TSR websites. Future: CPs to provide PPC Product Team with details of persons in organisation to whom the closure notification to be distributed. BT to ensure Closure Notification Team receives CPs list of notification recipients.

14. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/4 (07/12/06) – “BT to provide CPs with a process of what happens when exchanges close with regards to moving circuits, downtime, possible cost increase etc. Ideally BT to provide this ahead of the next PPC forum” Once notified the Planned Engineering Works process as detailed in CPs Customer Service Plans is initiated. CPs to liaise with Service Managers regarding circuit downtime. There may be no increase in cost to existing service as a result of the closure, currently being clarified. New circuits will attract the charge from the re-allocated exchange.

15. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action: 12/5 (07/12/05) - BT to define exactly what the 0207/CLZ geographic zone is, as there are potential NGN implications? BT to also define what the difference is between Metro/CLZ charging structures. A snap-shot of the PPC Exchange Data is provided to clarify CLZ listings – See next Slide

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17. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/6 (07/12/06) – “BT to check legal implications of previous application of Ancillary Charges which were charged but not noted in the CPL” BT agree to change the cancellation charges to reflect the following: Cancellation on same day as FOCA will only incur actual charges incurred. Cancellation from day after FOCA onwards will incur published cancellation charges.

18. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits BT Wholesale PPC Equivalence Measures Bob Day March 2007

19. Managed Bandwidth Services BTW Products and Strategy BT Reporting Structure BT BT Retail Main BT PLC Board BT Global Services Openreach Openreach Board Operatin g Committee BT Wholesale Board BT Retail Board BT GS Board EAB BT CEO Management reporting Compliance oversight Wholesale

20. Managed Bandwidth Services BTW Products and Strategy Wholesale Product KPIs reported to the EAB BT IPstream Fulfilment % orders completed by CCD Assurance % Broadband faults cleared by BT Wholesale within 40 hrs of receipt Migrations External CPs to BT; BT to external CPs; IPstream to Datastream and Datastream to IPstream. (wef Apr 07) BT Datastream Fulfilment % orders completed by CCD Assurance % Broadband faults cleared by BT Wholesale within 40 hrs of receipt PPC Fulfilment The percentage of Service orders successfully completed on or before the committed delivery date Assurance The number and percentage of product faults that are cleared within 5 hours

21. Managed Bandwidth Services BTW Products and Strategy Analysis Analysis is carried out in line with agreed EAB reporting principles i.e. initiated after 2 months’ and reported after 3 months’ when performance is outside of the control limits (pooled z-test) Commentary supporting current results and any resulting analysis is included in the monthly report compiled for the EAB. A quarterly commentary now being added to the added to the published charts on the Industry Web site. The same approach will apply to all new measures.

22. Managed Bandwidth Services BTW Products and Strategy Industry requirements captured and analysed. Availability of measures and feasibility of reporting on them being investigated. Measures are being developed where possible. Data will be collected and produced in publication format (absolute measures and pooled z-test where appropriate). Additional PPC Measures

23. Managed Bandwidth Services BTW Products and Strategy Progress on Measures. Industry SuggestionsMeasures under Consideration / Development % Success AssuranceThe percentage of Private Circuit / Partial Private Circuit fault reports cleared in objective time. This measure can be split between bandwidth groups. % Success Fulfilment (CDD, std lead-times) The mean time it takes to Provide a Private Circuit / Partial Private Circuit measured from Order Validation Date (OVD) to Service Completion Date (SCD). This measure can be split between bandwidth groups. Fault RatesAverage number of Private Circuit / Partial Private Circuits faults per circuit per year. Average time to restoreThe average time taken to clear a Private Circuit / Partial Private Circuit fault Service AvailabilityThe average OST (out of service time) per circuit per annum.

24. Managed Bandwidth Services BTW Products and Strategy Format of new measures Absolute Measures: Performance will be measure monthly for BT and external CPs, and will include a twelve month rolling average. Statistical comparison test: performance for BT and External CPs will be measured monthly against a standard 5% two tailed pooled z-test. The pooled z-test will only be applied to volumes greater than 200. If the denominator for either BT or external CPs is less than 200 per month, only absolute measures will be provided.

25. Managed Bandwidth Services BTW Products and Strategy Example of New measures for PPCs

26. Managed Bandwidth Services BTW Products and Strategy Example of New measures for PPCs

27. Managed Bandwidth Services BTW Products and Strategy Next Steps Validation of Measures Signoff within BT Group Formal Response to Industry (March/April 07) Information made available to the EAO/EAB Measures published on Industry Web site

28. Managed Bandwidth Services BTW Products and Strategy Questions…

29. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits BT Wholesale PPC Pricing Tool James Dewing

30. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Issues Log Update

31. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product Development Update

32. Managed Bandwidth Services BTW Products and Strategy Data Connectivity Development Timeline TDM on 21CN (Strategy statement) Ethernet Portfolio Harmonisation DecJanFebMarAprMay Jun JulAugSepOctNov Dec Q4 IPClear UDS Special Offer E-Line revised pricing E-Line Migration MPLS Interconnect trial 622Mbit/s PPC (re) launch High band PPC pricing review (155Mbit/s) Bundled Cct Pricing (PPC) Data Connectivity Pricing tool – Phase 1 (PPC) PPC Enhanced (phase 2) – Vol & term discounts Harmonised Ethernet – Release 1 Managed BNS PPC Metro Pricing (Phase 2) Metro E-ring MPLS Interconnect Campaign (type A) Managed PPC (Enhanced Phase 3) Harmonised Ethernet – Release 2 Harmonised Ethernet – Release 3 Traditional iVPN – Harmonised MPLS (Int) Data Connectivity Pricing tool – Phase 2 iVPN – Harmonised MPLS (Phase 2) PPC Metro Pricing (Phase 1) On-net pricing (PPC) RPC to PPC Novation Process Wires only PPC MPLS NB - All dates quoted are target launch dates only See next slide

33. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product In-Life Update QoS Billing Communications Third Party Sited Equipment Re- use Customer Satisfaction

34. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance - Reporting Update Q3 Aggregated Report published on website Q3 CP reports distributed Retail Comparison available on CDD, CRD and Repair PPC/Retail Comparison Q3 CDD Retail 95.03% PPC 93.67% Repair Retail 83.00% PPC 86.07%

35. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance – Q3 Highlights Circuit CDD performance improved to 93.67% from 92.05% last quarter FOCR targets decreased for the 5th quarter in a row. FOCR success is 78.81% against 77.89% in the last quarter The repair performance improved from 83.88% (7679 faults) to 86.07% 9197 faults) despite increased fault volume

36. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance – Q3 Lowlights The Highband FOCR remain stable. CP’s customers STC increased to 92% from 88% in the last quarter against slight increase in the number of Stop the Clocks. The number of new installation faults down to Communication Providers increased from 65.71% in the last quarter to 71.19%.

37. Managed Bandwidth Services BTW Products and Strategy Billing Migration to Geneva – Proposed Delivery & Migration Development to go live mid May 07 Parallel feeds between PCNBS & Geneva from mid-May to end-Sept. Parallel bills to show correlation between bills produced by PCNBS and those produced by Geneva. Migration commences July 07 30/09/07 PCNBS switch off 01/10/07 – Geneva commencing PPC bill production Throughout October reconciliation of PCNBS & Geneva Bills. Trial Period Trial will be between mid-May and 30/9/07.

38. Managed Bandwidth Services BTW Products and Strategy Communications January: 002/07 – PPC Data File update – 16/01/07 ACCN764 – Withdrawal of New Circuit on Spare Capacity Charges – 18/01/07 March External Briefing – Withdrawal of New Circuit on Spare Capacity Charges – Mid-March Partial Private Circuits

39. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Third Party Sited Equipment Re-use WEEE and RoHS directives Recovery of Third Party Equipment on cessation of last PPC.

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41. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits SOR Gordon Robinson

42. Managed Bandwidth Services BTW Products and Strategy A.O.B Next Meeting Scheduled 7 th June 2007 BTC, Business Showcase Partial Private Circuits