BT WholesaleTDM Circuit Strategy

“Evolution rather than revolution”

Consult 21 – Industry Webcall 29th January 2009

2

AGENDA Welcome and Introductions

Products Positioning

Confirmation of the TDM strategy

Sub 2M/bits TDM circuits approach and feasibility Feasibility results for 2M/bits and above TDM circuits

Infrastructure Change out

Next steps, timings and plans

Summary

Q&A session

3

BT TDM Products

BT Wholesale TDM Products

BT Global Services TDM & Analogue ProductsNon-BT CPs

End user customers

Positioning of TDM products

4

Confirmation of the 2Mbit/s & above TDM strategy

HOW >Two distinct bandwidth areas –

Sub 2Mbit/s2Mbit/s & above Based on consultation with Industry

Use of formal feasibility study to assessShared with industry

WHAT >Deliver the same product functionality as 20CContinue to offer Customer Experience as is currently provided on 20CEnsure changes are in collaboration with Customers with minimal service impactIntention is to retain existing systems for ordering, billing, faults etcUpgrade obsolete 20C infrastructure with 21CN Native TDM componentsMinimize disruption as a result of infrastructure upgrades

Native TDM Services

5

Feasibility & approach for sub 2M/bits TDM circuits

Feasibility has started

Interim Update March 2009

Expected completion June 2009

Covers Analogue & Digital Services, based on the requirements fed in from all

interested industry bodies

Specific focus to maintain comparable E2E performance as existing services

6

Feasibility results for 2M/bits & above TDM circuits

A phased approach allowing withdrawal of legacy infrastructure & systems with

minimum customer disruption and over time replacing obsolete components with 21CN Native TDM compliant components and systems supporting existing products

Continue with the majority of our 20C PPC portfolioContinue to use native SDH technology (no emulation).Retain existing Access and NTEInfrastructure upgrade activity will take place as business as usual

The PPC product will retain its existing framework - i.e. a Point of Handover (POH), a 3rd Party end and a Circuit between these two points

PPC services (including PPC V1 and PPC V2) will continue to be delivered as per the current product definition.

3rd Party

PoH LegacyTransmission

21CNTransmission

21CNNGN

• 21CN transmission is same technology as 20CN SDH & WDM – just more up to date equipment

• 21CN transmission is a bearer for 21CN NGN• 20CN transmission is separate – not currently connected to 21CN• All TDM is currently routed over 20CN

Existing transmission & TDM services

TECHNOLOGY CHANGEOUT STRATEGY

PoH LegacyTransmission

21CNTransmission

21CNNGN

• Need to begin to move customer sites onto 21CN to close 20CN infrastructure as it becomes obsolete

• Customers with multiple sites will have some delivered on 20CN infrastructure and some on 21CN infrastructure during the changeover

• This will result in mixed 20CN & 21CN infrastructureUPGRADE WILL BE PLANNED TO MINIMIZE DISRUPTION

Upgrade of obsolete 20CN to 21CN infrastructure

3rd Party

3rd Party

3rd Party

TECHNOLOGY CHANGEOUT STRATEGY

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Next steps, timings and plans2006 2007 2008

Jan2008Apr

2008May

2008Oct

2008Nov

2008Dec

2009Q1

2009Q2

2009Q3

2009Q4

Industry Bi-Laterals

Formal Industry ConsultationConsultation Document Draft21C Business Case.Review

21C Leadership Team sign offMonthly Point to Point UpdatesConsultation Document Final21C Experts sessions

21C TDM PRD

2Mbit/s Feasibility

2Mbit/s Feasibility Sign Off

Sub 2Mbit/s Scoping

2Mbit/s Solution Design

2Mbit/s Trial

Sub 2Mbit/s Feasibility

2Mbit/s Testing with CPs

2Mbit/s Infrastructure Changeout Trial

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TDM STRATEGY – SUMMARY Evolution not Revolution

• Industry consultation and customer feedback has shaped the decision process

• Two separate areas involved - Below 2Mbit/s and above 2Mbit/s

• Sub 2Mbit/s Feasibility continues

• 2Mbit/s + PPCs remain on the BTW portfolio until well into the next decade

• Native SDH Technology

• Existing PPC functionality will be supported

• Existing NTE will continue to be used and replaced only when obsolete

• 21CN components in solution design for 2009 deployment

• Transformation will be & infrastructure upgrades will be phased

• Engagement remains pro-active through Consult 21 and ongoing

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GLOSARY OF KEY TERMS

Native TDM Non emulated transmission providing contention free point to point bandwidth

Legacy Pre 21CN equipment maintained in the network

Bearer A higher bandwidth circuit that can carry a lower bandwidth circuit

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Q&A session