1. A. Progress Review Tim Johnson www.point-topic.com 28 January 2005

2. 2www.point-topic.com Contents Broadband overview –Following the established pattern A good year for the UK –Moving up the rankings UK competitive situation –The most multi-player market –The lowest level of unbundling

3. 3 Broadband Overview

4. 4www.point-topic.com 136m broadband lines worldwide at 30 September 2004 Source: Point Topic Q3 2004 Million lines

5. 5www.point-topic.com Broadband lines worldwide

6. 6www.point-topic.com Broadband lines in Western Europe

7. 7www.point-topic.com Broadband lines in the UK

8. 8www.point-topic.com Broadband penetration levels still vary widely

9. 9www.point-topic.com Penetration levels in major countries are converging

10. 10www.point-topic.com Share of broadband lines by technology Q3 2004 Source: Point Topic Q3 2004

11. 11www.point-topic.com Share of broadband lines by technology Q2 2004 Source: Point Topic Q1 2004

12. 12www.point-topic.com Broadband is growing faster than mobile did (World) Source: Informa, Ovum, Point Topic, H1 2004

13. 13www.point-topic.com Broadband is growing faster than mobile did (UK) Source: Informa, Ovum, Point Topic, H1 2004

14. 14 UK international rankings

15. 15www.point-topic.com Top Ten broadband countries by number of lines: Q204 - Q304 Source: Point Topic Q3 2004

16. 16www.point-topic.com Top Ten broadband countries by penetration Q3 2004 Source: Point Topic Q3 2004, countries with at least 500,000 population

17. 17www.point-topic.com Second Ten broadband countries by penetration Q3 2004 Source: Point Topic Q3 2004, countries with at least 500,000 population

18. 18www.point-topic.com The UK has been growing faster than Western Europe Source: Point Topic, H1 2004

19. 19www.point-topic.com UK fourth in DSL, but gaining

20. 20www.point-topic.com UK third in broadband, and also gaining

21. 21www.point-topic.com UK second in broadband penetration; first in 2005?

22. 22 UK competitive situation

23. 23www.point-topic.com BT has the smallest share of the retail broadband market in the EU Source: ECTA, Point Topic

24. 24www.point-topic.com A tale of two telcos: DSL competition in France and UK Source: ECTA

25. 25www.point-topic.com Tim Johnson www.point-topic.com tim@point-topic.com +44 (0) 20 7551 9260