1. The process of migration to BT’s next generation network Presentation for corporate businesses issue 1 August 2008 Information correct at time of publication.

2. Introduction The purpose of this presentation is to: 2 Provide an overview of the process of migrating corporate businesses to BT’s next generation network known as 21CN. Highlight how the impact of the migration can affect your business and outline mitigating plans in place. Provide details on useful sources of additional information. The overall aim is to build awareness of the process of migration to 21CN.

3. What is 21CN? o BT is upgrading its voice, broadband, and ISDN lines to a next generation network (NGN), known as 21CN. o An NGN is an intelligent, future-proof network capable of delivering communications services that will meet customer requirements in the coming decades. It offers users access to different service providers and supports generalised mobility, allowing for consistent, all-over service provision to users. o Switched-on is the name of the programme of public information to communicate about the process of migration to BT’s next generation network. o This communication is being managed by a working group of representatives from service providers, resellers, industry associations and Ofcom. 3

4. Why BT is building a new network? o Corporate and public sector customers – and their customers too – are demanding more advanced communications services. They want greater choice, greater control, richer services and the opportunity to be more productive and to expand their customer base. o As a result, the communications industry needs a software- driven customer network to enable the delivery of a new, simpler portfolio of next generation services that will meet customer requirements in the coming decades. o In 2008 BT began to introduce a range of next generation services to the industry including broadband and Ethernet and in mid 2009 will introduce integrated voice and broadband. o Existing services will see minimal changes in functionality, although new features may be available as a result of being switched-on. 21CN will enable enterprises to rapidly customise software applications to meet their specific business needs. 4

5. Who will be affected by this migration? o BT delivers network services to over 700 telecoms suppliers that provide services to customers across the UK. So even though you may not be a direct customer of BT, your services may still be carried over the BT network, and therefore you may be affected by these changes. o All customers whose products and services run over the BT network will be affected by a short interruption on the night of migration at a point in the next few years. 5 Cable networks, plus customers of Kingston Communications in East Yorkshire will not be affected. Mobile networks are not affected by the migration to 21CN.

6. Massive network simplification By collapsing 17 of BT’s existing networks into one global platform and reusing capabilities and removing complexity, 21CN will deliver services to customers more quickly and more securely. 6 Today ATM PSTN DPCN ATM DSL KiloStream PSTN Fibre Copper DWSS SDH - MSH SDH - mesh PDH IP ATM DPCN PSTN 21CN Fibre & Copper MSAN Call Control Content WWW ISP Multiservice accessConverged core Represents current thinking Wireless Ethernet Backhaul I/connects IP / MPLS Other service providers

7. VOLUNTARY migration period PLANNED migration period Migration process timelines The 21CN programme is now prioritising the delivering of next generation services ahead of replicating old services and introducing windows for voluntary upgrades to new services before planned migration. Any impact on corporate businesses during this stage is subject to individual service provider plans Your service provider will help you to plan for this final stage of the programme From April 2008 From April 2010 7 Volume Time

8. Migration process definitions 8 PLANNED – from April 2010 For remaining voice and ISDN lines Network migration & product retirements BT specifies the timing (which may be subject to some form of consultation) Closure of switch or platform = BT sets the date(s) and end users informed via switched-on Product retirements = BT sets date of withdrawal from new supply as well as migration windows or “off by” dates and Service Providers can influence timing within those windows VOLUNTARY – from April 2008 For next generation voice, broadband and Ethernet products Your service provider may determine that they want to offer a particular service during this period You will be advised by your service provider of any products that they will make available during this period Your service provider will make the choice to move all or part of its customer base on a geographic basis Your service provider will plan with you accordingly regarding geographical or product by product options Migration options

9. Reliability, continuity and resilience 9 A private IP network. A well designed, highly resilient network. A secure, safe network.

10. Preparations underway End customer communications Strategic solution deployed in South Wales Strategic solution lab testing Voice transformation trial Customer equipment compatibility testing Service provider testing Integrated system and process testing Exchange migration process testing 10

11. Building a robust network o BT is working closely with service providers, manufacturers and industry bodies to test systems, services and customer equipment to ensure full interoperability with BT’s next generation network. o World class testing facilities at Adastral Park and Swansea undertake an extensive range of system and process testing and technology ‘proving’ activities. o BT completes its operational readiness and service introduction proving with activities in the wider network prior to full service launch. o This is performed in conjunction with other service providers to ensure full interoperability. 11

12. Customer Premise Equipment (CPE) compatibility testing o Testing already completed identifies that the vast majority of customer equipment connected to current telephone lines and broadband services will work normally on the network once it has been switched-on. o A comprehensive and rigorous testing programme is ongoing. o The approach taken is to test a representative sample of each type of equipment. o Where any issues are noted, more exhaustive testing within a category is undertaken. To view the latest list of tested equipment, visit: www.switchedonuk.org/corporate/how/compatibility/ 12

13. 21CN - South Wales pilot Phase 2 (mid 2009  ) Phase 1 (to 2009) o Testing migration for PSTN voice replacement o Customer Premise Equipment (CPE) testing continues o A process will be available to allow alarm systems identified as falling outside published standards to be retained on the legacy network o Platform testing o End user communications testing o Currently being scoped with industry o Multi service pilot o Migration to next generation voice, broadband and Ethernet o Continued CPE testing 13

14. Will my products be affected? o Some products will remain on the legacy 20C network and will be withdrawn over time – examples are Private Access Broadband, IPstream and DataStream circuits. o If your employees have broadband services that are used for home working their service could be affected by a short interruption when they are upgraded should their service provider choose to introduce next generation broadband products. Please note that whilst the Broadband service is being migrated there will be a voice service outage. o BT are already withdrawing some products such as ISDN 2DASS and ISDN 30 1.421 and are offering replacement options. More information can be found on the switched-on website or by talking to your service provider. 14

15. Product portfolio impact 15 Note: The BT product retirements programme is complementary but managed and run independently of the 21CN implementation programme. Following input from Ofcom and the industry, the presence of or reference to this retirements information with other 21CN materials is provided for a customer’s convenience and does not imply interdependence between the two programmes. MIGRATING Migration of existing products to 21CN. Includes: PSTN (includes, for example, CPS, Least-Cost Routing) ISDN2e, ISDN30e, WLR NEW New products enabled by 21CN. Includes: Wholesale Broadband Connect Wholesale Broadband Managed Connect Wholesale Broadband Connect Converged Wholesale Ethernet RETAINING Products retained on existing platform for the time being. Includes: Analogue PCs, KiloStream, MegaStream, IPstream RETIRING Products that have reached the end of their life-cycle or that have a replacement in the new portfolio. Includes: Pre-ETSI ISDN, Meter Pulse Facility, DataStream, Telex, Business Highway 15

16. Emergency and Critical services Special measures will be taken by service providers who provide blue light services to minimise the impact on providers of emergency and critical services at the final point of migration (from 2010 onwards): o Migration will not be attempted if emergency/essential calls are in progress. o 21CN migration plans already take into account existing resilience arrangements to protect these services. o Detailed local operational plans will be developed. o Migrations impacting on 999 primary, secondary and alternative routings will not coincide. o Priority will be given to migrating blue light control centres on Tuesday/Wednesday and Wednesday/Thursday nights where possible. To aid planning, emergency services will be told: o The week of their migration nine months before. o The night of their transfer three months before. 16

17. How will my business be affected by the migration? From 2010 onwards: o Your services will experience a small number of very short interruptions due to pre-migration activities. These will prepare your lines for migration to 21CN. o Customers may experience some minor service interruptions at the final point of migration to 21CN. o This only applies to a range of services that are provided over the BT network. o If you have multiple sites in different locations these sites may not be migrated at the same time. o Your service provider will contact you to discuss when the migrations will occur. 17

18. How will my business be affected by the migration? From 2010 onwards: o All migration activities will take place out of hours (00:01 – 06:00 unless otherwise agreed) from Monday to Thursday. o On the night of migration voice services will have an interruption of up to 3 minutes for incoming calls and up to 30 minutes for outgoing calls. o BT will take all reasonable steps to protect any calls that are in progress on the night of migration. o From 10pm on the night of migration to 9am at the latest the following morning, no further changes can be made to your services. For example, diverts cannot be amended. This is known as the network services freeze. 18

19. What will I need to do? o Keep in contact with your service provider(s) to plan for your migration activities and implement any alternative routing plans if required for the final night of migration. o Review the switched-on website to understand if any incompatible CPE is being used on your network. o If any of your services are “blue light” services, please contact your service provider to discuss how migrations will impact you. o Build awareness of this forthcoming activity with colleagues who need to know about this programme. 19

20. What is switched-on? o Switched-on is the name of the programme of public information to communicate BT’s migration to a NGN. o Switched-on is not commercial in any way and is not designed to give any single provider a competitive advantage. o Switched-on will not communicate any new services or benefits enabled by the new network for BT or any other service provider. 20

21. General sources of further information for you to access 21 The independent public information website covering the process of migration: http://www.switchedonuk.org For general information about BT’s 21CN programme go to: http://www.btplc.com/21CN/

22. If you have any feedback about the contents of this presentation, for instance if you feel more information would be helpful or if something needs further clarification, please let your service provider know. 22

23. Questions and Answers 23 & Questions Answers

24. Back up slides 24

25.  Up to 210 Exchanges ADSL2+enabled  Up to 3.4m user lines enabled  Up to 50% coverage in London  Up to 35% coverage in Barnsley, Glasgow and Sheffield  Up to 420 Exchanges ADSL2+enabled  Up to 7.3m user lines enabled  Up to 85% coverage in London & Birmingham  Up to 40% coverage in Belfast, Cambridge, Derby and Portsmouth  Up to 570 Exchanges ADSL2+ enabled  Up to 10m potential end-user lines enabled  Up to 75% coverage in Exeter, Reading and Manchester  Up to 50% coverage in coverage in Cardiff and Aberdeen  Up to 90 Exchanges ADSL2+ enabled  Up to 1.3m user lines enabled  Up to 75% coverage in Birmingham  Up to 25% coverage in Edinburgh Next generation broadband enabled exchangesEnabled by the 30 th April 2008 Next Generation Broadband UK rollout FY 2008/09 Q1 Q2Q3Q4 25

26. Addressable Market coverage ~ 21% Addressable Market coverage ~ 47% Addressable Market coverage ~80 % May 2008 – 106 + Nodes Sept 2008 – 300+ Nodes Mar 2009 – 600 + Nodes 21CN Ethernet - UK rollout FY 2008/09 26