Building Britain’s connected future

INCA Conference - Building Gigabit Britain 19 October 2016

Clive Selley, CEO Openreach

Our strategy – Better, Broader, Faster

Better Service

Broader Coverage

Faster Speeds

Deliver step change in customer experience

Go beyond the 95% Government’s

superfast fibre target

Extend ultrafast rollout with mix of G.fast and FTTP

1

Better Service:Openreach dashboard underpinning our commitments and transparency

• Going beyond the Ofcom copper service levels:

• Being accountable for copper and fibre

• On track to halve missed appointments

• Fixing the Ethernet fundamentals

• Delivering the new Ofcom service levels and increasing throughput

• Investing extra £30m

• Fibre coverage over 26m

• Take up over 6.5m

• Ultrafast available to 327,000 homes and businesses

2

Broader coverage: We compare well with other countries, both in Europe and worldwide

We’re delivering the world’s fastest fibre

rollout

UK has:

• Highest coverage and take up of superfast services

• Highest average broadband speed, among our major European peers

• Ahead of countries with different technology and regulatory models e.g. Portugal and New Zealand – UK has better SFBB coverage and take-up

• Our network has underpinned development of Britain’s digital economy, contributing to a higher share of our GDP than in any other G20 nation.

• World Economic Forum ranked Britain 3rd, out of 138 countries, for digital readiness

• A diverse geography of large cities, variable population densities, wide-open rural areas, remote islands and other hard-to-reach locations, meaning……

……. we need a mixed fibre technology ecosystem; including Long Reach VDSL, G.fast and FTTP (including Business FTTP)

Over 26m premises now passed

3 Fibre coverage: 26.1m premises

Go beyond 95%

Broader coverage: On track to help the government achieve their 95% superfast fibre target by the end of 2017 and to go beyond

Delivering the USC

• Continuing to deliver fibre broadband beyond 95%, with FTTP playing an increasing role

• Tackle ‘not-spots’ and infill in existing footprint

• Ready to deliver 10Mbps Universal Service Commitment (USC)

• Collaborating with CPs to develop new solutions (e.g. Long Reach VDSL) to reach the final 5%

More competition

• Provide access to Openreach’s ducts and poles network

• Ducts and Poles proof of concept trial underway with five CP customers

4

G.fast

Faster SpeedsTaking Britain from a Superfast to Ultrafast nation, ambition to deliver 12m Ultrafast by 2020

FTTP Future innovation

• FTTP network covers over 327,000 premises; including multi dwelling units, new sites and brownfield developments

• Business FTTP launched in high streets, science and business parks (as part of up to 1m ultrafast fibre for businesses by 2020)

• Free FTTP infrastructure built for new sites developments of 30+ homes, from November

• On track for nationwide roll-out in 2017

• Successful trials: reliable high speeds, average headline rates of 300Mbps

• Pilot in January with 25,000 end customers

• Making G.fast available to

c.140,000 homes and businesses by end of March

• Speed innovation trial using 3 technologies on FTTP network:

o 2.5 Gbps GPONo 10 Gbps XGS-

PON o 40 Gbps NG-

PON2

• Delivering 52.5 Gbps over a single fibre

• 40 Gbps solution could allow dedicated, symmetric Gigabit services for individual customers

6

Passive Infrastructure AccessDelivering easy access to our duct and pole network; with increased self service

Current Product

From Jan 2017 (tested in PoC)

Plus Digital Maps (Spring 2017)

Openreach supply CPs with network records prints at CPs request

CPs can self serve Openreach network records on line via ‘Digital Map’

× ×

Reduction in number of process touch points with Openreach 5 3 2

CPs able to conduct duct blockage clearance themselves ×

CPs able to deploy distribution joints in Openreach chambers ×

We’ve significantly improved our offering, giving access our duct and pole infrastructure with a more accessible and efficient process.

• Monthly PIA working group facilitated by OTA, focusing on process, policy and product development

• Improvements will provide CPs an equivalent experience to that of Openreach when building fibre networks

• Ambition to evaluate and move the proof of concept process to BAU from January 20177

Duct and Pole proof of concept trial

• Six month proof of concept trial launched 1 July - December 2016, open to every UK-wide provider

• Process compressed to reduce touch points with Openreach, CPs can survey and build in single step; deploying distribution joints in our chambers.

• Five CPs participating: o 89.8km of duct reserved to date o 84.4km of duct in progress of being built

• CPs starting to undertake their own duct blockage clearance, by converting existing BAU orders

• Some CPs asking Openreach to unblock ducts, on their behalf, this can take longer

• Positive feedback on transparency and process, especially use of distribution joints and ability for CPs to use their own contractors to unblock ducts

Passive Infrastructure AccessEnabling alternative fibre network build

1. Faster build times; new ways of working with CPs reducing build time

2. Greater CP flexibility; new process enables CPs to carry out more activity in one visit and find alternative duct routes if blocked

3. Competitive product offering; our PIA product and PoC process is competitively priced, benchmarking well against other European countries

Learnings

8

What our CP Customers think?

‘We have been using Openreach’s duct and pole access since 2011, and consider ourselves experts in this area. These trials could mean we can

build significant superfast and ultrafast networks quicker and cheaper, and can potentially make a massive difference to spreading fibre broadband to

the most difficult to reach areas.’Andy Conibere, MD, Call Flow

"This is a great opportunity to expand our national footprint to quickly reach rural and metropolitan ‘not-spots’ with superfast and ultrafast fibre broadband.“

Kenny Roberts, Technical Director, NextGenAccess Ltd

“We have worked successfully with Openreach for a considerable amount of time. Having access to their ducts and poles has allowed us to deploy our own fibre networks across poorly connected business parks on a much faster timescale, and has seen numerous businesses connected in a fraction of

the time that it would have taken otherwise.”Ben King, CEO, WarwickNet

9

Passive infrastructure access: Enabling CPs to inform and deploy their own network builds

Six search options enables user to find Fibre IDs and PIA information

1

2

With access to same data as Openreach, phased approach to deliver maps: -

1. Deliver enhancements to ID tool to show additional data on ducts, poles and chambers, view of duct capacity and existing CP reservations

2. Add functionality to download larger maps and pre-populate PIA order form with selected network assets

10

Passive infrastructure access: Collaborating with CP customers to share our digital network maps

Click here to select the Layer to view equipment

details.

• We take our network data security very seriously

• We’re working with Ofcom to ensure our data is fully protected, as a condition of publishing our digital maps

11

Better Service

Broader Coverage

Faster Speeds

• Deliver step change in customer experience

• Be accountable and transparent

• Aim to go beyond government’s 95% superfast target

• Continue to pioneer final 5% solutions

• Superfast to ultrafast• Extend FTTP footprint

• Meet and exceed rising MSLs• Deliver missed appointments and

throughput• Quarterly dashboard to share progress

• Complete superfast rollout• Continue LRVDSL technical trials with CPs• Conclude duct and pole trial and launch

• Deliver 17 G.fast pilots by end March 2017• Free FTTP for new developments with 30+

premises• Take ultrafast to 500k by end March 2017 • Deliver Business FTTP pilots

Commitments Milestones

Delivering for customers and for Britain