1. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 1 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.

2. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 2 Business Assurance This presentation covers: BT’s view of the discussion topics for Implementation & Migration Working Group BT’s proposal for the handling of Testing through the Consult21 Working groups BT’s methodology for undertaking End User PSTN migration BT’s approach to Business Continuity

3. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 3 Migration – Business Assurance Approach Mike Cook This section is designed to outline the areas which BT considers will need to be addressed through the Implementation & Migration Working Group to underpin both Communication Provider and End Customer (Mass) migration to 21CN.

4. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 4 Test & Diagnostics Service Migration – BT Plan & Approach To deliver the objectives of the Implementation & Migration Working Group, Industry consultation/dialogue will be required in the following areas : Operational Readiness Service Migration Business Management Trials & Testing Fallback Procedures Migration Methodology & Procedures Operational Planning & Analysis End User Impact Analysis “Pathfinder” Success Criteria Command & Control Business Continuity Planning

5. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 5 Conformance Testing Working Group This section shows BT’s proposed handling of Testing through the Consult 21 Working Group structure. It also outlines BT’s initial thoughts on the scope of Testing which the Implementation & Migration Working Group will consider

6. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 6 Conformance Testing Working Group Approach: A single Conformance Testing Working Group will be formed This Working group will be tasked by different Working Groups as appropriate to ensure compliance with all relevant specifications Client Groupings: Architecture & Framework Working Group Product Working Groups Implementation & Migration Working Group Each Client Group has its own Terms of Reference for the CTWG Key players from BT will be assigned to the CTWG as appropriate

7. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 7 Conformance Testing Group – WG Fit “Network Compatibility” & “Systems Interface Compatibility” Product “Fit for purpose” Fulfil, Assure & Bill processes Customer Beta trials Migration Processes “Ensure transition From old to new input from Systems & Process WGs Architecture WG’s Product Working Groups Implementation & Migration WG

8. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 8 I&M WG Requirements of the Conformance Testing Group The focus of I&M is on delivering a high level of business assurance covering migration and introduction of 21CN related things. To that end it requires to know the compatibility of equipment from the Conformance Testing Group of : CPE  Risk mitigation and equipment confidence levels for end users Pre-Migration & Post Migration Testing  Testing any changed operational processes  Physically verifying routing changes etc  Verification Testing

9. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 9 21CN: BUSINESS CONTINUITY Alan Turner This section aims to inform Communications Providers regarding work that is currently underway with BT on Business Continuity for 21CN so that a methodology for Communication Provider consultation can be agreed.

10. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 10 21CN BUSINESS CONTINUITY: PRINCIPLES Business Continuity is regarded as a key critical activity in the delivery of 21CN both for BT and its customers. Business Continuity is defined as the processes and procedures that are implemented when normal processes cannot be managed by business as usual means I.e. an emergency. 21CN Business Continuity is a collective term that covers Contingency Planning, Physical and Logical Security and Network Assurance.

11. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 11 21CN BUSINESS CONTINUITY: PRINCIPLES Success depends on a:  A clear set of deliverables underpinned by a cohesive strategy  Focussed ownership  Comprehensive requirements  A clearly communicated and accessible Command and Control structure

12. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 12 21CN BUSINESS CONTINUITY: PROGRESS Resilience requirements captured and embodied in High Level 21CN network solution design. Business Continuity High Level Solution Design now delivered  scopes the key areas that will require greater focus at the low level design stage. TE Fallback Governance Strategy under development  i.e. the command and control structure empowered to execute the Transfer Engineering Fallback process. 21C vendor contract negotiations:  Business Continuity of Vendor supply chain  Support for disaster recovery

13. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 13 21CN BUSINESS CONTINUITY: NEXT STEPS Communications Providers Business Continuity requirements need to be collated and understood Managed via the Telecoms Industry Emergency Planning Forum (TIEPF) and Network Security Exchange (NSE) Governance and timescales to be agreed with TIEPF before Christmas - requirements to be collated by end of February 06 Requirements will be assessed based on affordability and practicality. Stage report back at January 2006 Requirements compliance statement to be secured pre- Pathfinder

14. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 14 21CN BUSINESS CONTINUITY: NEXT STEPS Business Continuity Low Level Solution Design  will be followed by risk and impact analysis resulting in mitigating strategies to reduce potential impacts Realisation of mitigating strategies e.g. design and deployment procedures for containerised disaster recovery equipment. Delivery assurance process required to make sure all known risks have been matched against BT and CP requirements, mitigated and signed off in advance of transfer.

15. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 15 21CN BUSINESS ASSURANCE: Command and Control An end to end Transfer Engineering Command and Control design. This must include:  Migration Control  Operational Command and Control  Two-way communications process and channels (BT-CP)  Escalation criteria for Incident/Event driven CP communications i.e. when do we step up from BAU fault reporting etc  Joint exercise schedule in advance Pathfinder

16. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 16 Pathfinder – Mass Migration Alan Cameron This section is designed to inform Communication Providers of the impacts on End Customers of mass migration for PSTN VOICE SERVICES in Pathfinder in order that Industry including BT through the Communications Working Group can commence development of consistent cross industry messages to End Customers in preparation for the publication of the Plan of Record to stakeholders in February/March 2006

17. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 17 Context Transfer Engineering is the migration of End Users from legacy platforms to 21CN with minimal customer impact End User migration starts with Pathfinder and runs for approx 4 years. Communication Provider route migration is a precursor to end user migration Migrating 150k – 300k End Users per week is very challenging but achievable Communication Provider route migration (interconnect) End Customer Communication Provider mass migration (PSTN voice) PATHFINDER

18. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 18 Mass Migration Methodology Mass (PSTN) Migration applies to all non-interconnect products identified as migrating within BT’s portfolio Some obligatory product types are not supportable on 21CN and are subject to separate plans Physical transfer will be coordinated such that End users will be transferred in number range groups from legacy PSTN to 21CN 21CN will be built, configured and tested prior to end user cutover Transfers will happen overnight in periods of low network activity Transfers may be scheduled for any night of the week. Some service outage is inevitable but aim is to minimise – see final slide for a summary

19. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 19 Prepare Network Configure + Verify On the night Migration Monitor TE completion and handover Go/No Go Decision Point Decision not to fallback Customer data Audit Grooming & Compression Activity Capture and translate data Load data - churn Pre-transfer customer checks Final Check of Readiness in all areas Load / Activate Data Move Cables Move PSTN routes Update BT OSS Post transfer Tests Fault Handling Monitor customer experience Monitor Network - resolve issues Initiate fallback if necessary Hand over to In-Life management TE Workflow Management BT Approach to Mass Migration

20. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 20 System X or AXE10 PSTN Concentrator * PSTN DLE BB EU PSTN EU Network before Transfer Engineering Start

21. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 21 PSTN Concentrator 21CN PSTN Ethernet Backhaul * MSAN PSTN DLE * TAM Prepare for Transfer

22. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 22 PSTN Concentrator 21CN PSTN Ethernet Backhaul * MSAN PSTN DLE * Data Migration PSTN – Call Servers Data Migration PSTN – MSAN TAM Migrate PSTN to MSAN

23. Consult21 Information is subject to change and is for discussion purposes only. Any dates/timings are the current anticipated timescales and may be subject to change. 23 Prepare Network Configure + Verify On the night Migration Monitor TE completion and handover Go/No Go Decision Point Decision not to fallback Short outage – a few minutes maximum - on many but not all lines at different times as ports are rearranged One short outage - a few minutes maximum - for each migrating customer as new network is Tee connected Short total service outage – a few minutes maximum - for all migrating customers Disruption of incoming calls during period of cutover No further outage unless fallback procedures initiated TE Workflow Management Customer Service Outages – PSTN lines