1. PPC Industry Forum 16 September 2010

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 Introductions – All 21C Update-Martin Wade Review of previous actions– Pauline Cowie Product Development Update– Pauline Cowie Product In Life Update – Jeneva Hibbert QoS Reports Communications/Notifications BCMR / 2010 Contract Review Update AOB – All Forum Review -Pauline Cowie Date of next meeting - All Partial Private Circuits

4. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Industry Forum Introductions

5. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits 21CN Update Martin Wade BT Innovate & Design

6. Managed Bandwidth Services BTW Products and Strategy Background BT are introducing options to use 21CN WDM and SDH switch capacity to route 20C TDM products and services. The initial part of this plan is to use 21CN to augment the existing 20C Core Tier 1 network to allow capacity growth on 21C The purpose of this slide pack is to outline the FOA testing parameters BT will be using to check the performance of VC4 highways when routed on 20C SDH and when moved on to 21C WDM and SDH. These results will be used as the basis for further discussion with CPs and to give confidence that moving to core network TDM bearers to 21C will not impact their end customer experience. There are no plans yet to migrate or offload 20C traffic but once developed, these will be shared well ahead of any implementation.

7. Managed Bandwidth Services BTW Products and Strategy Proposed FOA 21C Core/Metro 21C 4/4 21C SDH ADM 21C 4/4 21C SDH ADM 2Mbit/s 20C OMS ADM 20C 4/1 20C Ring ADM 20C Ring ADM 2Mbit/s VC4 Highway to be created 21c 20c

8. Managed Bandwidth Services BTW Products and Strategy Overall FOA Approach The intention will be to perform ‘before & after’ tests on a VC4 highway Run predefined tests on a VC4 highway routed on 20C, then move the highway to 21C, then re-run the same tests Produce a set of results that compare the two instances It should be made clear that we are not expecting there to be any difference but need to perform these checks to build industry confidence of routing SDH across the 21CN. These tests will be performed on the FOA network being deployed in Scotland

9. Managed Bandwidth Services BTW Products and Strategy Target High Level Milestones – Sep 2010 Update Share scope of testing strategy with industry – Apr 2010 - complete BT to deliver trial network, OSS and DCN updates and configure initial connectivity FOA sites prepared at I&C Edinburgh Donaldson,and Inverness – 21C Equipment installed & comissioned Edinburgh Capital – 21C Equipment installed but comissioning delayed due to power supply issues – referred back to power planners for resolution of recitifier issue – approx 3 month delay to original plan Current estimate is that initial network tests will complete Oct 2010 Specific performance tests will start following successful network tests BT to prepare test scenarios & collect data – Nov 2010 BT to share results with industry – Dec 2010

10. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Review of Previous Actions (in conjunction with Action List)

11. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 04/12 (04/12/08) RFT T2R Initiatives Presentation: Validation Rules Global Crossing requests for clarification of the rules

12. Managed Bandwidth Services BTW Products and Strategy Action Point 01/03 (05/03/09) Exchanges taken off the Closure List Cable & Wireless requests for clarification regarding the postponement of notified closures Partial Private Circuits

13. Managed Bandwidth Services BTW Products and Strategy Action Point 05/06 (04/06/09) Provisioning Stats Requirement for Mean Time to Provide to be shown in Working Days instead of Calendar Days on the Wholesale Customer Reporting tool. Partial Private Circuits

14. Managed Bandwidth Services BTW Products and Strategy Action Point 04/09 (17/09/09) B End Shift Price Global Crossing requested BTW share new prices with Industry prior to price notification Partial Private Circuits

15. Managed Bandwidth Services BTW Products and Strategy Action Point 07/09 (17/09/09) Central London Zone (CLZ) Exchange Review CPs requested details of their circuits affected by the review Partial Private Circuits

16. Managed Bandwidth Services BTW Products and Strategy Action Point 01/12 (03/12/09) Efficient Use of Point of Handover (PoH) Equipment – Consultation Proposals On target for 1 st July 2010 launch Partial Private Circuits

17. Managed Bandwidth Services BTW Products and Strategy Action Point 03/12 (03/12/09) Wholesale Customer Reporting (WCR) – Security Global Crossing requested confirmation of WCR security Partial Private Circuits

18. Managed Bandwidth Services BTW Products and Strategy Action Point 04/12 (03/12/09) Wholesale Customer Reporting (WCR) – Shortfall between WCR & Netview Plus Global Crossing confirmation re accessing previously accessed data from Netview Plus Partial Private Circuits

19. Managed Bandwidth Services BTW Products and Strategy Action Point 07/12 (03/12/09) RPC to PPC Conversion Virgin Media wanted clarification on whether it is possible to convert one RPC circuit into two PPCs Partial Private Circuits

20. Managed Bandwidth Services BTW Products and Strategy Action Point 03/03 (04/03/10) Highband FOC Trial Progress update on the Highband FOC Trial Partial Private Circuits

21. Managed Bandwidth Services BTW Products and Strategy Action Point 06/03 (04/03/10) Business Connectivity Market Review (BCMR) Global Crossing requests BTW a brief overview of the activities undertaken as a result of the BCMR Partial Private Circuits

22. Managed Bandwidth Services BTW Products and Strategy Action Point 01/06 (17/06/10) Excess Construction charges Global Crossing asked whether Openreach can deduct the generic standard wayleave charge where ECC is applicable Partial Private Circuits

23. Managed Bandwidth Services BTW Products and Strategy Action Point 02/06 (17/06/10) Excess Construction charges Global Crossing asked that CPs is informed when the ECC is removed from the other circuits in respect of when the same charge is applied to multiple orders and provision of the “Driver Circuit” is complete and therefore ECC will not be levied against the other circuits. Also Openreach is to advise on the process to be used to manage these instances. Partial Private Circuits

24. Managed Bandwidth Services BTW Products and Strategy Action Point 03/06 (17/06/10) Early Life Failure Circuits delivered to incorrect location. Global Crossing requests BTW provide details on whether a circuit delivered to the incorrect location is classed as an Early Life Failure and would it be measured as such Partial Private Circuits

25. Managed Bandwidth Services BTW Products and Strategy Action Point 04/06 (17/06/10) Point of Handover (PoH) Failure Both Global Crossing & Verizon did not view the use of a fault reporting proforma as an effective method of capturing circuits when a Point of Handover ADM failed. They felt the reporting of the SNEID of the ADM should be sufficient. CPs was informed of the project to make it mandatory for CPs to use eCO Repair when placing fault reports rather than via a telephone call. They request BTW investigate the possibility of including the reporting of a PoH failure By the insertion of the SNEID into eCO Repair, which would then generate the circuit details for each of the circuits terminating on the failed SNEID. This replaces action 5/12 Partial Private Circuits

26. Managed Bandwidth Services BTW Products and Strategy Action Point 05/06 (17/06/10) Cancellation of a cessation request after CRD Clayton Jones (Global Crossing) requested the PPC Product Handbook be updated to make it clear that once the CRD (Customer Required by Date) is passed a cessation request cannot be cancelled Partial Private Circuits

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

28. Managed Bandwidth Services BTW Products and Strategy PPC Development – Road Map The PPC Road Map is available via the www.btwholesale.com website.www.btwholesale.com

29. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product In-Life Update QoS Reports Communications & Notifications 2Mbit/s Bearer Audit

30. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits QoS Reports

31. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats FamilySub Product Family 200912 (31Mar10) 201001 (30Apr10) 201002 (31May10) 201003 (30Jun10) 201004 (31Jul10) 201005 (31Aug10) PARTIAL PRIVATE CIRCUITS % Success 99.8499.7199.299.4699.2299.84 Successes 629685623551634644 Volume 630687628554639645 Failures 125351 Late 010000 Highband Products & Services % Success 100 Successes 141261157 Volume 141261157 Failures Late 000000 Narrowband Products & Services % Success 100 96.3100 Successes 40453326156 Volume 40453327156 Failures 1 Late 000000 Wideband Products & Services % Success 99.8399.6899.1599.6199.1999.84 Successes 575628584514614631 Volume 576630589516619632 Failures 125251 Late 010000

32. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision– Early Life Failures (ELF) FamilySub Product Family 200912 (31Mar10) 201001 (30Apr10) 201002 (31May10) 201003 (30Jun10) 201004 (31Jul10) 201005 (31Aug10) PARTIAL PRIVATE CIRCUITS % Success 99.8499.7199.299.4699.2299.84 Volume 630687628554639645 OTD ELFs 115351 Late With ELFs 000000 Late Without ELFs 010000 PARTIAL PRIVATE CIRCUITS Highband Products & Services % Success 100 Volume 141261157 OTD ELFs Late With ELFs Late Without ELFs 000000 Narrowband Products & Services % Success 100 96.3100 Volume 40453327156 OTD ELFs 1 Late With ELFs 0 Late Without ELFs 000000 Wideband Products & Services % Success 99.8399.6899.1599.6199.1999.84 Volume 576630589516619632 OTD ELFs 115251 Late With ELFs 000000 Late Without ELFs 010000

33. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision to Customer Required by Date (CRD) Family 2009 12 (31Mar10) 2010 01 (30Apr10) 2010 02 (31May10) 2010 03 (30Jun10) 20100 4 (31Jul10) 2010 05 (31Aug10) PARTIAL PRIVATE CIRCUITS Average Days 55.3657.1950.9764.2848.445.43 Total Days 34,93039,34732,06235,61131,45729,395 Volume 631688629554650647 Highband Products & Services Average Days 13.558.9247.8335.9126.3336.57 Total Days 189707287395158256 Volume 141261167 Narrowband Products & Services Average Days 15.56.4227.322.3744.0768.17 Total Days 620289901604661409 Volume 40453327156 Wideband Products & Services Average Days 30.9331.9125.5338.6322.8219.4 Total Days 17,84520,13815,06219,93314,35412,299 Volume 577631590516629634

34. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision – Mean Time to Provide Family 2009 12 (31Mar10) 2010 01 (30Apr10) 2010 02 (31May10) 2010 03 (30Jun10) 2010 04 (31Jul10) 2010 05 (31Aug10) PARTIAL PRIVATE CIRCUITS Average Days 55.3657.1950.9764.2848.445.43 Total Days 34,93039,34732,06235,61131,45729,395 Volume 631688629554650647 Highband Products & Services Average Days 76.57114.67108.67102.9176.3393.71 Total Days 1,0721,3766521,132458656 Volume 141261167 Narrowband Products & Services Average Days 27.622.5339.3339.2258.2786.17 Total Days 1,1041,0141,2981,059874517 Volume 40453327156 Wideband Products & Services Average Days 56.7758.5751.0464.7747.8944.51 Total Days 32,75436,95730,11233,42030,12528,222 Volume 577631590516629634

35. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats - Chart

36. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair Stats FamilySub Product Family 200912 (31Mar10) 201001 (30Apr10) 201002 (31May10) 201003 (30Jun10) 201004 (31Jul10) 201005 (31Aug10) PARTIAL PRIVATE CIRCUITS Partial Private Circuits % Success 86.4879.9787.6782.9386.885.92 Successes 2,3472,2562,0412,4532,4342,002 Volume 2,7142,8212,3282,9582,8042,330 Failures 367565287505370328 Late 216433123283175158 Highband Products & Services % Success 97.0689.0986.8480.792.0687.04 Successes 334933465847 Volume 345538576354 Failures 1651157 Late 142544 Narrowband Products & Services % Success 81.670.585.3576.5780.5585.67 Successes 439392332353323299 Volume 538556389461401349 Failures 99164571087850 Late 5914131683722 Wideband Products & Services % Success 87.5482.1388.1684.1887.7485.94 Successes 1,8751,8151,6762,0542,0531,656 Volume 2,1422,2101,9012,4402,3401,927 Failures 267395225386287271 Late 15628890210134132

37. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair – Repeat Faults FamilySub Product Family 200912 (31Mar10) 201001 (30Apr10) 201002 (31May10) 201003 (30Jun10) 201004 (31Jul10) 201005 (31Aug10) Right First Time (PCT2R) Partial Private Circuits Volume 2,7142,8212,3282,9582,8042,330 OTR with Repeats 151132164222195170 Late With Repeats 4526819911 Late Without Repeats 171407115264166147 Highband Products & Services Volume 345538576354 OTR with Repeats 23613 Late With Repeats 10000 Late Without Repeats 132544 Narrowband Products & Services Volume 538556389461401349 OTR with Repeats 402326404128 Late With Repeats 1576411 Late Without Repeats 4413425643621 Wideband Products & Services Volume 2,1422,2101,9012,4402,3401,927 OTR with Repeats 111107135176153139 Late With Repeats 3018215810 Late Without Repeats 12627088195126122

38. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Mean Time to Repair Family 2009 1 (31Mar10) 2010 01 (30Apr10) 2010 02 (31May10 ) 2010 03 (30Jun10) 2010 04 (31Jul10) 2010 05 (31Aug10 ) PARTIAL PRIVATE CIRCUITS Average Repair Time(hh:mm) 04:3607:0003:0903:4102:4203:16 Total Time (Days) 520.07822.58304.26453.22314.6316.99 Volume 2,7142,8212,3282,9582,8042,330 Highband Products & Services Average Repair Time(hh:mm) 02:4406:3904:4601:4602:3001:50 Total Time (Days) 3.8515.227.534.176.524.1 Volume 345538576354 Narrowband Products & Services Average Repair Time(hh:mm) 05:3008:2903:4404:0602:4803:27 Total Time (Days) 123.2196.4660.4478.6746.5650.07 Volume 538556389461401349 Wideband Products & Services Average Repair Time(hh:mm) 04:2506:3902:5903:3902:4103:17 Total Time (Days) 393.02610.9236.29370.38261.51262.82 Volume 2,1422,2101,9012,4402,3401,927

39. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits –Repair Stats - Chart

40. Managed Bandwidth Services BTW Products and Strategy Communications: Published External Briefings Partial Private Circuits

41. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Pricing Notifications New prices becomes effective 1 October 2010

42. Managed Bandwidth Services BTW Products and Strategy PPC Bearer Audit Communication Providers were provided with the output of the audit and were asked to validate data. Changes to inventory is underway and will be shown in November’s bills. Partial Private Circuits

43. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits A.O.B.

44. Managed Bandwidth Services BTW Products and Strategy Forum Review Next Meeting Scheduled Proposed Date: 2 December 2010 Venue: TBC Partial Private Circuits